Sir Royalty Income Fund SIRZF

Primary Symbol: T.SRV.UN

Consumer Cyclical Restaurants

SIR Royalty Income Fund (the Fund) holds investment in SIR Corp (SIR). The Funds' investment, SIR is engaged in the business of owning and operating full-service restaurants in Canada. SIR has concept restaurant brands, including Jack Astor’s Bar and Grill, Scaddabush Italian Kitchen & Bar, and Canyon Creek Chop House, signature restaurant brands, such as Reds Wine Tavern, Reds Midtown Tavern, Reds Square One, and The Loose Moose, which are used by SIR under a license agreement with SIR Royalty Limited Partnership (the Partnership. The Fund receives distribution income from its investment in the Partnership and interest income from the SIR Loan. The Fund indirectly participates in the revenues generated under the License and Royalty Agreement through its Investment in the Partnership.

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Sir Royalty Income Fund > The Fund responds...

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Comment by BlueJay2020on Apr 17, 2021 12:41am

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RE:RE:RE:RE:RE:RE:RE:The Fund responds...

I'm not as bothered about the use of the kitchens and staff of Jack's - the Fund did not pay for these. All we own is the brand. What is at issue is a) the use of our customer lists leading to b) lost sales and royalties because of new competition.

May not amount to a hill of beans at this point, but still. The communication from SIR Corp has been lacking.

Interestingly, the independent trustees have not responded to implied criticism of them - will they do so in the run-up to the AGM?

In the meantime, looks like we are in for an elongated lockdown in Ontario, which isn't going to help the SP in the short-term. I guess if SIR CORP is hurting for cash, they can sell a chunk of SRV to Lembit!

flamingogold wrote: They are blowing smoke which is why Janes is taking a stand. Convenient that Renegade not only has an immediate kitchen, supply chain and employees all created by Jack's but also can market to clientelle built on the back of Jack's and Scaddabush, profit from it and yet say we did it all on our own? I don't think so.

Fabozzi wrote: I'm a little confused about the comment from today's release that states Renegade Chicken "is not using any of the Fund's trademarks or being supported in any way by the Fund." I understand the trademark part of that statement. However, are they not using the trademark restaurant kitchens for their operations ? Without the infrastructure in place supported by the trademarked restaurants would the Renegade kitchen be viable ?