Heinz in Licensing Pact With Boston Chicken

H.J. Heinz Co. agreed to a licensing agreement it expects will let it manufacture and test sales this year of branded products under Boston Chicken Inc.’s trademarks. Heinz would pay the parent of the struggling Boston Market restaurant chain undisclosed royalty fees based on sales of products to retailers under the agreement, which is subject to approval of an Arizona Bankruptcy Court. Boston Chicken said it expects the court to consider approval of the agreement May 25. Boston Chicken filed for bankruptcy protection on Oct. 5. The Golden, Colo.-based chain has been trying to recover from losses by closing outlets and trimming costs. Heinz said it could not disclose information about the products it plans to test. Boston Chicken’s shares, which peaked at $41.50 in December 1996, closed at 60 cents, up 3 cents, in over-the-counter trading. Heinz fell $1.25 to close at $49.44 on the NYSE.