An emerging provider of temporary staffing services in the United States, announced today that it has assumed management and financial control of 41 franchise store locations.
In October 2005, Command Center embarked on a strategy to migrate from a franchise model to a company-owned operating platform and on November 9, 2005, announced that it had entered into an agreement to acquire the assets of up to 70 temporary staffing stores operating as Command Center franchisees or licensees. The Company has completed due diligence reviews and audits on the 41 stores that it is currently managing and expects to complete due diligence and audits on the remaining 29 stores in the second quarter of 2006.
“Our immediate assumption of the management and financial control of these stores should facilitate a smooth transition of ownership upon the completion of due diligence and other acquisition related activities. Longer term, we believe that the directional change to a company-owned operating platform is in the best interests of all shareholders and will allow us to successfully grow our footprint. We are confident the market will continue to be receptive to our product offerings,” stated Glenn Welstad, Chairman and CEO of Command Center, Inc.
The Company anticipates that a formal transfer of assets will occur as soon as final arrangements for workers compensation coverage are in place.
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