8-K 1 d8k.htm FORM 8-K Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 1, 2006

 

 


Champps Entertainment, Inc.

(Exact name of Registrant as specified in charter)

 

Delaware   000-22639   04-3370491
(State or Other Jurisdiction
of Incorporation)
  (Commission
File Number)
  (IRS Employer
Identification No.)

10375 Park Meadows Drive, Suite 560, Littleton, CO 80124

(Address of Principal Executive Offices) (Zip Code)

(303) 804-1333

Registrant’s telephone number, including area code

N/A

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2, below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 



Item 2.05 Costs Associated with Exit or Disposal Activities.

On May 1, 2006, Champps Entertainment, Inc. (the “Company”) closed three restaurant locations as approved by its Board of Directors. Two of the locations are located in Houston, Texas and one in Toledo, Ohio. The closures resulted from the Company’s ongoing restaurant portfolio review and real estate rationalization efforts, which is further described in the press release attached as Exhibit 99.1. The closures follow a January 10, 2006 announcement that as many as five locations were being considered for closure. Decisions regarding the remaining two locations have not been made.

Two of the closure locations are expected to be exited through sublease or abandonment and one closure location is expected to be purchased from its landlord for $3.2 million with its disposal occurring through resale. The Company expects the total net cash closure costs to ultimately be approximately $3 to $4 million, consisting of direct closure costs including employee severance of approximately $0.3 million and carrying costs of approximately $0.4 million with the remainder consisting of direct exit costs for the locations related to sublease, abandonment or sale. Additionally, the Company expects to recognize a non-cash impairment charge in connection with the closure of the restaurants as determined in connection with the filing of the Company’s Form 10-Q for the quarter ended April 2, 2006.

A copy of the press release announcing the closures is attached as Exhibit 99.1 to this Current Report on Form 8-K.

 

Item 9.01 Financial Statements and Exhibits.

 

  (a) Financial statements of business acquired.

Not applicable

 

  (b) Pro forma financial information.

Not applicable

 

  (c) Shell company transactions.

Not applicable

 

  (d) Exhibits.

 

Exhibit
Number
  

Description

Exhibit 99.1    Champps Entertainment, Inc. Press Release dated May 3, 2006


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: May 3, 2006

   

Champps Entertainment, Inc.

(Registrant)

     

By:

 

/s/ David D. Womack

       

Name: David D. Womack

       

Title:   Chief Financial Officer


EXHIBIT INDEX

 

Number   

Description

Exhibit 99.1    Champps Entertainment, Inc. Press Release dated May 3, 2006