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The Japp families, makers of Jays potato chips, are letting
go of their closely held snack food business for the second
time in the 77-year history of Jays Foods. The family sold
their company once before back in 1986 and ended up buying
it back eight years later and now the company has landed in
bankruptcy court.
If everything goes according to plan, the iconic Jays name
will continue to flourish under a new owner who plans to invest
heavily in the brand and turn out new products, a venture
the Japp family hasn’t attempted in many years.
Chicago-based private equity group, Willis Stein & Partners,
agreed to buy Jays out of bankruptcy. They plan on investing
into the company and keeping the Chicago plant open.
After more than a 6 percent decline in supermarket sales,
a skyrocketing popularity of low-carbohydrate diets and struggle
against competitors such as Frito-Lay, Jays foods fell under
bankruptcy protection. Analysts said that Jays would have
to produce some higher-margin products in order to compete
with Frito-Lay.
Grocery analysts stated that from a retail point of view
that Jays is a strong competitor that holds opportunities
in the premium end of the market and the key is giving the
consumers what they want.
The
Miami Herald March 5, 2004
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