Thursday, March 13, 2008

Domino's to sell stores, cut jobs

Domino's Pizza Inc., the second- biggest U.S. pizza chain, has agreed to sell 60 restaurants to franchisees and employees, the company announced Tuesday.

Domino's also will eliminate 55 jobs as part of a cost-saving program.

The sales will result in proceeds of $20 million, Ann Arbor-based Domino's said Tuesday in a filing with the U.S. Securities and Exchange Commission.

The company said it will eliminate jobs in its marketing, administrative and operations divisions

The company estimated the job cuts will result in an annual savings of about $4.5 million before taxes.

The chain will incur costs of about $1.3 million in the first quarter, including $1.1 million for severance.

Domino's rose 8 cents to $13.41 at 3:40 p.m. in New York Stock Exchange composite trading.

The biggest U.S. pizza chain is Yum! Brands Inc.'s Pizza Hut

DETNEWS.COM

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