Goldilocks’ majority owners to sell out only at ‘right price’

Majority owners of Goldilocks Bakeshop Inc. said they will sell their holdings in the country’s largest bakeshop chain only if "the price is right," according to a top company official.

"It is a well established and universal principle that any business is for sale, if the price is right. Make us an offer we can’t refuse, go through the right procedures. If the value is too good to pass up, then why not?" said Goldilocks president Freddie Go, whose family controls the business.

Go issued this statement following an announcement made by the Lorenzo family’s Pancake House Inc. that it has resumed talks with the owners of Goldilocks for a possible buy-in deal.

"There are many parties interested in our business, both local and foreign. Again, all this attention from prospective partners confirms that we have built an immensely successful brand. Some groups will express their intentions in a more proper manner and observe correct protocol. Still, there are others who choose different ways to publicize their intent, hoping that the exposure will somehow help their other businesses. People have different ways of courting, I suppose," Go said.

Go, however, pointed out that only a certain branch of the family is open to selling their shares in Goldilocks.

"I’m honestly confused why news reports claim that it is the majority shareholders that are negotiating with potential partners. There are no deals that are even close to being in the horizon and certainly none that involve a majority shareholding," Go said.

But Go pointed out the company is open to forging partnerships as it aims to further build the business and enhance shareholder value.

Goldilocks has 192 outlets in the Philippines, 17 in the United States and one in Canada.

This year, Goldilocks has set aside P500 million for the construction of 15 to 20 new outlets in the Philippines and another two or three branches in the US this year. It is also building a commissary in the US East Coast to meet the growing demand for the company’s products.

Goldilocks is likewise eyeing to expand in Singapore, Hong Kong and Thailand in the next two years to further improve its profitability and tap the growing overseas Filipino market in those areas.

Last year, Goldilocks registered sales of $30 million in the US and Canada.

Goldilocks’ aggressive franchising program in 1991 helped it jumpstart its expansion.

The company offers various kinds of cakes and pastries like ensaymada, chicken pie, meringue tart, cinnamon roll, brownies and jellyroll.

Pancake House, which has P4.7 billion in cash from the divestment of its 22-percent stake in Singapore-listed Del Monte Pacific Ltd., had reportedly offered to buy Goldilocks for P2 billion or P9.5 million each store.

The offer was said to be good for only 90 days.

Goldilocks’ closest rival Red Ribbon Bakeshop had been sold to fastfood giant Jollibee Foods Corp. for P1.8 billion last year.