Bess Eaton is coming back.
The Westerly-based coffee-shop chain had more than 40 stores in the southern New England market before it sold out to Tim Horton’s in 2004. Now that Tim Horton’s closed its stores in the area last November, a local businessman is looking to get the once-popular Bess Eaton brand off the ground again. The Washington Trust Co., another Westerly institution, is providing the financing.
David Kmetz, vice president of commercial lending, answered five questions about it.
PBN: How did this deal come about for Washington Trust?
KMETZ: I was approached back in December by Dave Liguori. He has over 25 years of experience in the coffee industry. He actually used to work for Bess Eaton, and he came up with the idea of reopening Bess Eaton. See, Tim Horton’s closed all the local stores in November, so Dave approached Tim Horton’s about purchasing the Bess Eaton name, brand, formula. Now they’re reopening three of the stores. He’s working with the franchisees of the Tim Horton’s. They approached the bank about possible financing, and it went from there.
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PBN: What convinced Washington Trust this was a good loan to make? Nowadays, I’d think you’d be leery about financing a restaurant.
KMETZ: It’s [part of the] fast-food industry, which is not one banks generally like to finance. And yes, it really is a quasi startup, but what made us feel most comfortable was the success that Bess Eaton had and the fact they were keeping it relatively small – three sites and basic coffee and baked goods. And the experience that Dave Liguori brought to the financing request, as well as including the franchisees in the operation.
PBN: So how much is bank lending in this deal?
KMETZ: Rather than disclose the dollar amount, I will tell you we provided real-estate financing, equipment financing and an operating line for them.
PBN: Which stores will be reopened?
KMETZ: They purchased two sites, one on High Street in Westerly and one in downtown Pawcatuck [Conn.]. And they’re leasing the third site in Wakefield [a section of South Kingstown].
PBN: Were you a fan of Bess Eaton in its heyday?
KMETZ: To be honest with you, I don’t drink coffee. But there’s a real buzz in town about it. My wife was addicted to Bess Eaton coffee. Just recently, they went before the licensing board to extend their hours, and every board member was excited about bringing Bess Eaton back.
The beauty of the whole story is they’re bringing back a very, very successful company that was founded in Westerly, and they’re bringing back the franchisees of the Tim Horton’s. They’re going to be hiring about 60 people.
The article fails to mention that Liguori was in a senior management position with the failed Bess Eaton chain. If the company was so sucessful in the first place, why did it go bankrupt? Things must be very dull with the board members on the licensing board if they get excited about bringing Bess Eaton back. I”am sure all these so-called jobs numbering 60 are the sort that will lead to the road of prosperity. Also,
the transaction would not have happened without SBA involvement not mentioned by Kmetz.