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Tim Horton’s returns officially to Canuck roots: will ditch U.S. paren
Monday, 29 June 2009 - 7:47am
Tims says the reorganization will save money due to Canada’s lower tax rates and make international expansion easier.
The move will create a Canadian subsidiary with which Tims will merge, creating a company incorporated under the Canada Business Corporations Act.
Tim Horton’s shareholders will hold the same amount of stock as before, and the company will continue to operate under the Tim Horton’s name with stock listings on the TSX and the New York Stock Exchange. The chain has struggled to boost sales in the United States despite thriving in Canada.
THE CANADIAN PRESS
TORONTO — Coffee giant Tim Hortons Inc. (TSX:THI) is returning its home base to Canada with a plan to reorganize and convert to a Canadian-based corporation.
The popular coffee house chain is currently owned by a U.S.-based parent company after its spinoff from U.S.-based burger giant Wendy’s in 2007.
The move will create a Canadian subsidiary with which Tims will merge, creating a company incorporated under the Canada Business Corporations Act.
Tim Horton’s shareholders will hold the same amount of stock as before, and the company will continue to operate under the Tim Horton’s name with stock listings on the TSX and the New York Stock Exchange. The chain has struggled to boost sales in the United States despite thriving in Canada.
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Tim Horton's In the U.S.
Tim Horton's has done well with their expansion in to the U.S. and will continue to expand and do well. Like most businesses the conditions of the economy have made things more difficult but unlike many; Tim Hortons has sutained revenue levels through the recession and kept nearly all doors open. I see this move not as a reflection of poor sales or change in expansion plans in to the U.S. market.