Update: Packo’s sale — Bennett statementWritten by Joel Sensenig | Managing Editor | firstname.lastname@example.org
UPDATE: Bennett statement at end of post.
A letter obtained by Toledo Free Press states Tony Packo’s, Inc. was sold Friday and all of its workers’ employment has been terminated effective Saturday. The letter, written by an official with the court-appointed receiver of the Hungarian hot dog company, suggests employees will be able to apply to work for the company once again.
The letter sent to employees and dated February 3 was signed by Steve Skutch, of The Skutch Company, Ltd.
“Please forgive the impersonal nature of this contact,” the letter states. “As you are aware, The Skutch Company, Ltd. was appointed Receiver for Tony Packo’s, Inc. and its affiliated companies by Order for the Lucas County Common Pleas Court filed on or about August 18, 2010. The Packo’s companies have been operating under the Receiver’s authority since the date of appointment.”
Tony Packo’s has been in receivership since August 2010, after then-co-owner Robin Horvath alleged the other owners, Tony Packo Jr. and Tony Packo III, along with company controller Cathleen Dooley, were involved with the misappropriation of $170,000 in company funds. Horvath owned 50 percent of the company, while his uncle, Tony Packo Jr. and cousin, Tony Packo III, owned the other half. After being put into receivership, it appeared the company was close to being sold to businessman Bob Bennett at the end of December, but that agreement fell through when Bennett advised Fifth Third Bank tried to change the terms of the deal. Tony Packo’s has a $2.6 million loan with the bank.
“Recently, the Court authorized the Receiver to sell the assets of the Packo companies to TP Foods, LLC,” the letter states. “Consistent with the Orders issued by the Court, and effective at the close of business today, February 3, 2012, the sale to TP Foods, LLC has occurred. As a result of the sale, your employment with Tony Packo’s, Inc. will terminate today.
“TP Foods, LLC will assume operation of all Packo’s restaurants and food service operations effective Saturday, February 4, 2012. It is my understanding that TP Foods, LLC will invite employees to apply for regular full-time or part-time employment. You will receive notification separately from TP Foods, LLC.”
Skutch closed the letter by stating, “I want to express my thanks to each of you for the work you provided over the last 18 months. I appreciate your hard work under difficult circumstances. I wish you the best of luck.”
We are pleased to announce that TP Foods, LLC was successful with the closing of the purchase of the Tony Packo’s brand on Friday, February 3. 2012.
UPDATE: TP Foods President Bob Bennett released the following statement on Feb. 5:
“We wish to express our thanks and gratitude to all of our loyal Tony Packo’s guests and customers for the steadfast support expressed by their patronage of Tony Packo’s restaurants and products during the receivership process.
“Our suppliers and vendors have demonstrated that they are the best partners any business could have. Our appreciation of their decades of service and loyalty to Tony Packo’s will be enduring.
“Over 95% of the employees of the previous employer, Tony Packo’s, Inc., have been invited to apply for employment with TP Foods, LLC and we anticipate that most of those prospective employees will be hired by us.
“We are very grateful for their dedication, patience and understanding during the receivership process. This fine team of restaurant professionals at the Tony Packo’s Toledo restaurants, Central Kitchen, Gift Shoppes and Retail Sales continue to maintain their high standard of guest care and great food. Meetings with employees will begin with our Supervisory personnel on Monday.
“We are in the process of developing an experienced team of professionals to lead this historic Toledo based brand. Tony Packo, Jr. and Tony Packo, III have agreed to join us and continue the legacy.”