LOCO - El Pollo Loco stock plunges as key investor liquidates position

2023-03-29 11:44:40 ET

El Pollo Loco ( NASDAQ: LOCO ) stock plummeted over 16% on Wednesday as a key investor moved to liquidate its position in the company.

According to an 8-K filing, director Dean C. Kehler resigned on Tuesday, effective immediately, after about 18 years on the board.  His resignation comes in connection with the liquidation of the Trimaran Group, an asset manager of which is a managing member. The liquidation will also remove the asset manager as a major shareholder in the restaurant chain.

“The company has been informed that [Trimaran Group] are distributing substantially all of the shares of the company’s common stock held by the Trimaran Group to their respective investors, members and limited partners and the Trimaran Group intends to subsequently liquidate or distribute its remaining assets and wind up,” the filing read.

The filing noted the registration for resale of up to 16,818,465 shares of common stock by the selling stockholders. A subsequent filing names Trimaran, Dean Kehler, and Trimaran Jay R. Bloom as major shareholders connected to the registration.

Shares of El Pollo Loco ( LOCO ) slumped 14.12% in midday trading, rebounding from an intraday low that reflected an over 16% drop.

Read more on the chain’s most recent earnings results .

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