Richtree settles with founders, franchisor

Last Updated: Wednesday, June 16, 2004 | 6:13 PM ET

CBC News

The company that operates the Movenpick, Marche and Marchelino restaurants has ended its fight with its founders and the Swiss company behind Movenpick.

Richtree Inc. (TSX:MOO.b)said Wednesday that the settlement of the lawsuits between the parties will allow it to resume normal operations and even look at expansion.

After a bitter boardroom fight that broke out last fall, leading to the suspension of husband-and-wife founders and Richtree executives Jorg and Marianne Reichert, Richtree lost money.

FROM OCT 29, 2003: Richtree board suspends CEO; rehires CFO

But now it said it paid the Reicherts about $1 million, and will pay them $2.3 million more over five years.

The Reicherts will give up control of Richtree, and resign as officers and directors.

The company also said Swiss franchisor Movenpick Holding has ended a lawsuit by paying the company $3.25 million and lending it $2.15 million The money will be used to retire debt, pay the Reicherts and for working capital.

The franchise agreement with Movenpick is ended, but the companies have agreed to talk about a new deal.

Richtree launded the Reicherts in a statement.

The stock rose 5 cents to 40 cents on the TSX.

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