Trans World Corporation was the original name of the holding company set up to own Trans World Airlines.
History
editIn 1967,[1] when the airline sought to diversify into other areas of business, a key investment was Hilton International Hotels, the non-American interests of the Hilton Hotels chain. (Because of this split, the Hilton International chain had to call its hotels in America Vista, while future overseas locations of the American Hilton chain were called Conrad International. This operation was later sold by Trans World Corporation while under the leadership of Charles C. Tillinghast Jr. the CEO of TWA and the first known to receive a golden parachute employment contract.
In 1983, Trans World Corporation, under Chief Executive Officer L. Edwin Smart, spun off Trans World Airlines[2][3] to Carl C. Icahn,[citation needed]
At the time of TWA's spinoff, TWC owned Spartan Food Systems Inc., the Canteen Corporation, Hilton International, and Century 21 Real Estate Corporation.[3]
Trans World Airlines Worldwide
editAs a result of both Trans World Airlines and Trans World Corporation being publicly traded prior to the spinoff, public records permitted analysis which indicates that "wealth transfer" of a sale of TWA was as much a reason for the sale of TWA as was a desirability to "restructure union contracts".[4] Conversely, it was circa 1982-1984 when UAL Corporation and AMR Corporation, the parent companies of United Airlines and American Airlines first took shape. This period is also an era marked by extremely competitive airline industry forces fighting for deregulation survival along with fighting for opportunities of vast individual creations of wealth characterized by those accumulated by leading industry figures such as Frank Lorenzo and Carl Icahn during the 1980s.
In 1986, TWC was liquidated.[5] TW Services was formed at end of 1986 upon the dissolution of Transworld Corp.[6] L. Edwin Smart remained head of TW Services Inc., the successor of Trans World Corporation which remained headquartered in the same building and shared many directors as Trans World Corporation. TW Services Inc. continued the use of the TW ticker symbol on the NYSE. Its business centered on food services and retirement care.[7]
TW Services was the target of several hostile take over attempts which ended in June 1989 when TW Services agreed to be taken over by Conniston Partners for $1.65 billion.[8] As part of the buy out, TW Services moved its headquarters from New York City to Spartanburg, South Carolina.
Flagstar Companies
editIn 1992, private equity firm, Kohlberg Kravis Roberts acquired a 47% interest in TW Corporation, later known as The Flagstar Companies, and encouraged the company to sell non-core businesses.[9] The following year, TW Services changed its name to The Flagstar Companies in its bid to focus on the food service industry with a portfolio of businesses including Volume Services America, Hardee's, Quincy's Family Steakhouse, El Pollo Loco, Canteen Corporation and Denny's.[10]
After accumulating $2.2 billion in debt, Flagstar filed for Chapter 11 bankruptcy protection from its creditors in a Federal bankruptcy court in South Carolina in July 1997.[11] Six months later, Flagstar emerged from bankruptcy as Advantica Restaurant Group Inc. and with three-fourths of its stock controlled by four of the former Flagstar's senior creditors. At the time of emergence, Advantica owned Denny's, Carrows, Coco's, El Pollo Loco and Quincy's Family Steakhouse and was the largest franchisee of Hardee's restaurants.[12] Advantica paid off its inherited debt by selling off most of its holdings.
In November 1999, Advantica sold El Pollo Loco to an investment firm for $114 Million plus the assumption of $14 million in debt.[13]
Today the remnants of the corporation are Denny's.
Trans World Corporation was the predecessor of the way and manner in which many of the airlines with holdings and holding parent companies conduct and create their business structural organization.
See also
edit- Transamerica Corporation, one of the first conglomerates, created as the parent of Bank of America and other financial interests, was perceived as an airline company before it bought and sold one.
References
edit- ^ [1][dead link]
- ^ Cole, Robert J. (October 27, 1983). "Trans World Approves Spinoff for T.W.A." New York Times.
- ^ a b "Spinoff Approved At Trans World Shareholders of the Trans World Corporation voted overwhelmingly in favor of proposals that will spin off Trans World Airlines from the company. Under one proposal, the 81 percent holding of the parent company in the airline will be distributed to Trans World stockholders at the rate of about 0.93 share of T.W.A. stock for each Trans World share. Under a second proposal, the incentive compensation plans of the two companies were separated". New York Times. December 29, 1983.
- ^ Alexander, Gordon J.; Benson, P. George; Gunderson, Elizabeth W. (Summer 1986). "Asset Redeployment: Trans World Corporation's Spinoff of TWA". Financial Management. 15 (2): 50–58. doi:10.2307/3664978. JSTOR 3664978.
- ^ "TW Service Chairman Is Planning to Retire". New York Times. February 26, 1987.
- ^ "Transworld implements liquidation plan". United Press International. December 30, 1986.
- ^ Sanchez, Jesus (July 17, 1987). "TW Services Traces Roots to Diverse Firms". Los Angeles Times.
- ^ "TW Services moving headquarters to Spartanburg". United Press International. June 8, 1989.
- ^ "Kohlberg, Kravis Plans Stake in TW". New York Times. June 26, 1992.
- ^ Mathews, Jay (August 1, 1993). "Denny's Tackles A Stained Image". Washington Post.
- ^ "Denny's Parent Makes Bankruptcy Filing". New York Times. July 12, 1997.
- ^ "Flagstar company renamed". Augusta Chronicle. January 8, 1998.
- ^ Hernandez, Greg (November 10, 1999). "El Pollo Loco Sold for $114 Million". Los Angeles Times.
External links
edit- "Advantica Restaurant Group, Inc. History". Funding Universe.