MOTO Franchise Corp. was formed by Harry Loyle, a former director, and five of the company's current area developers.Loyle owns approximately 9 percent of the company's common shares, and is currently principal shareholder and is an area developer.
The company is asking the Bankruptcy Court for approval to assume all of its franchise and related agreements and for approval of an agreement with Provident Bank
for use of cash collateral while the bankruptcy proceeding is pending.The company anticipates its activities, including franchisee and customer service levels, will continue uninterrupted while the bankruptcy proceeding is pending.Upon completion of the sale, expected to occur by Jan. 31, 2003, the franchise and related activities will be conducted by MOTO Franchise Corp.
as president and CEO.Afterward, Moto Photo
will cease company store operations and other activities.MOTO Franchise Corp.
is planning on maintaining the Company's corporate headquarters in the Dayton suburb of Trotwood, Ohio.
Xerox's Mulcahy sees revenue growth of 5 percent by 2005