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Article: Investors go off diet in Cinnabon purchase.(Marketplace)
- Article from:
- Los Angeles Business Journal
- Article date:
- January 31, 2005
- Author:
CopyrightCOPYRIGHT 2005 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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A Westwood private equity fund is betting on the high-calorie, high-carb cinnamon bun--so much so that it has acquired 86 Cinnabon outlets in 22 states, including 14 in Los Angeles County.
In purchasing the company-owned stores for $2 million, St. Cloud Capital LLC, in partnership with Orange County investor David Kim, has formed CinnaWorkS LLC. Most of the stores are located in shopping malls throughout California, the Southeast, Northeast and in Michigan.
"Cinnabon was definitely an orphaned child," said Cary Fitchey, senior managing director of St. Cloud Capital. "It had not been given the proper funding or proper management. It was definitely in need ...