Spencecliff: the end of an era.

In an effort to save a 47-year-old restaurant chain, its Japanese owner is shaking things up.

"If I hadn't bought this company, it would have gone bankrupt."

FOR NEARLY half a century, Spencer Weaver Jr. owned and operated Hawaii's largest locally-based restaurant chain, the Spencecliff Corp. At its peak, his self built of catering operations, banquet halls, a bakery hotels on Maui and in Tahiti, and 28 restaurants employed 1,500 workers and rang up annual revenues of $40 million.

Then, in 1985, lease rents for his Fisherman's Wharf and Tahitian Lanai eateries started skyrocketing. High interest rates on his bank loans were contributing to an $8-million debt load, which blocked badly needed renovations. A new restaurant in Lahaina had failed to attract a following, and the Yuppie-type establishments at Ward Centre were wooing his regular clientele. By the end of 1985, Weaver's Spencecliff Corp. was six months behind with its creditors. "I didn't know how I was going to pay off those bills," he remembers.

After two potential buyers-one from Califomia and the other from Canadabowed out of preliminary negotiations, Weaver began talks with Akiyoshi Nishimura. Head of a $1-billion, family-owned restaurant and entertainment company in Tokyo called Nittaku Enterprises, Nishimura had heard of Weaver's interest in selling. The idea of purchasing a restaurant business in Hawaii was appealing to the non-English-speaking Nishimura, whose 24-year-old, American-educated son, Eiji, could help run the business. Weaver, realizing the seriousness of his financial dilemma, agreed to sell Spencecliff to the deeppocketed Nishimura for what he considered a bargain $6 million. "That's why I sold it so cheap," says Weaver. "Mr. Nishimura had unlimited resources and was going to pay off all those bills and fix up the places that needed it."

The deal was struck and on July 14, 1986, the Nishimuras took over the Island operation. Weaver quickly agreed to the new owner's request to retain the well-known Spencecliff name, provided that he remain on the board of directors. As soon as the final papers were signed, an ecstatic Weaver dashed off a letter to his employees, reassuring them that the new owners were a "nice Japanese family who would treat them right."

Akiyoshi assumed the titles of chairman and CEO of Spencecliff and Eiji was named vice chairman. While the father would make frequent trips between Hawaii and Japan to set policy matters for the management staff, his eldest son would handle the administrative duties. A few days after the purchase, Eiji announced that he had great respect for the Spencecliff name, and planned to retain virtually all of its offices and employees. That included John 'Jack" Simpson, who would continue as president and chief operating officer; Richard Morishige as a vice president; and Ken Stehouwer as personnel director. Because of Eiji's need to travel to Japan every month to help with the family-owned business, the old management group was given "total authority" to manage SpenceclifFs day-to-day operation.