Court denies Kenny Rogers’ petition for injunction

A Makati Regional Trial Court has junked a petition by complainants Roasters Philippines, Inc. (Kenny Rogers Chicken), Coffee Masters, Inc. (Seattle’s Best Coffee), and Presidio Food, Corp. (Popeye’s Chicken) in their application for a writ of preliminary injunction which arose from the recent padlocking of their main offices at the Singapore Airlines building by Toucan Realty President George T. Siy.

The padlocking of the Kenny Rogers Chicken main office was brought about by its failure to pay tens of millions of pesos in rental, utilities, and dues since the end of 1998 despite repeated demands by Toucan, a sister company.

Records show that as early as two weeks prior to the padlocking incident, Roasters was already in the process of transferring its operations to another location. Toucan managers complained of the tactics being employed by Roasters reminiscent of a "runaway tenant" and justified that the padlocking was to attach any assets of Roasters to protect their interest.

Roasters was given a one year notice to vacate the premises which Toucan managers claim is beyond what any landlord will give to a tenant. Sources said Roasters officers claim they do not have to pay the rentals since they are also stockholders of Toucan although records show that other sister companies housed in the building regularly update their respective rentals and dues.

The Makati court stated that the issue in this case is the complainant’s claim to continued use of their offices. She added that the complainant’s "alleged right proceeds from, as it is anchored on, their lease contract" with Toucan. The violation of the terms of the lease contract, "particularly the non-payment of the rentals" terminated the agreement.

Sources said that while the Siy-owned companies’ food group is the most visible in terms of media exposure, it may post the weakest operation in terms of financial performance compared to the other Siy divisions.

This view is further bolstered by some stockholders after the padlocking and loss of the injunction case together with the admission of Roasters president Bernadine Siy in court pleading that the company has yet to disclose the company’s financial statements and their operations have no income to distribute.

Sources add that Bernadine Siy’s alleged attempts to take over full control of other family-owned businesses has reportedly resulted in a substantial decline in the operating income of the divisions as well as caused major disruptions in the family’s harmonious relations. They said other sister companies like Toucan are forced to support Kenny Rogers operations to the point of losing money. Records show that Toucan pays for utilities and common dues for Kenny Rogers main office.

Some quarters said that the padlocking and injunction denial issues further contributed to the ongoing feud between the Siy-siblings with one faction led by George Siy together with sisters Angeline Siy-Fiechter and Jaqueline Siy-Share and the other faction of Bernadine with brothers Wilfred and Frederick.

Elders in the Filipino-Chinese business community are said to recognize George Siy as the real moving force behind the rebound of the Siy empire after the untimely death of their father, Ramon Siy-Lai. Business insiders say that it was George who made the Siy businesses independent from its former partners. George is also highly credited for pushing for the diversification and financing of the businesses, including the Kenny Rogers chain and maintained harmony within the family companies’ operations.