Cracker Barrel Old Country Store declined an offer to help the company move forward The Wall Street Journal reported Monday.
The company will now operate on its existing business plan The Journal reported Monday.
Sardar Biglari, who owns the biggest amount of Cracker Barrel shares at 20 - percent notified the company that it was not making the most of its earnings from stockholders. Biglari has also not been successful at getting a seat on Cracker Barrel's board. The company also refuted his idea about a $20 special dividend according to The Journal.
"We are disappointed that Mr. Biglari is seeking to call a special meeting to vote on a proposal requesting that the company commence a sale process, particularly in light of his defeat by substantial margins in three consecutive proxy contests," James Bradford, chairman at Cracker Barrel told The Journal.
Biglari feels a transaction of the company should be its board main focus. Biglari was also up for sending in a bid so the company can guide the next steps of negotiations. Biglari was also in talks with a financial institution to ensure money for the deal.
According to the Journal, laws in Tennessee does not allow Biglari's group in purchasing the company.
"We believe Cracker Barrel's assets would be far more productive under our leadership than in the hands of present leadership," Sardar Biglari told The Journal. "Thus, we are willing to purchase the business because we perceive a significant upside under our management. But other sophisticated buyers also should have the opportunity to bid for the company."
Cracker Barrel saw a decrease in shares 0.23 percent to $111 Monday Fox Business reported.
The company shares have gone up to 73 percent looking back to January.
More than 600 Cracker Barrel's exist in 42 states according to information on the company's website.
