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Famous Dave's buys 7 units from bankrupt franchisee

MINNETONKA Minn. Famous Dave’s of America Inc. was awarded seven of nine restaurants owned by a bankrupt franchisee upon completion of a $6.8 million “stalking horse” bid it submitted last December.

 

The company now will take over seven Famous Dave’s restaurants as company-owned units. The locations belonged to North Country BBQ Ventures LLC, once one of the largest franchisees in the Famous Dave’s system. When it filed for Chapter 11 bankruptcy protection last year, Providence, N.J.-based North Country chose the franchisor as its preferred buyer, setting in motion the stalking horse auction in which Famous Dave’s was granted the first bid, giving it the chance to set the lowest auction price.

 

 

 

Famous Dave’s winning bid was adjusting cash considerations to account for money North Country still owed the franchisor, and is subject to bankruptcy court approval. A sale hearing took place Monday in United States Bankruptcy Court for the District of New Jersey, and the transaction was expected to close Tuesday.

 

 

 

The seven restaurants, which remained open throughout the bankruptcy process, are located in the New York cities of Smithtown and Westbury, and the New Jersey cities of Mountainside, Brick Township, Hamilton, New Brunswick and Metuchen. The two remaining units, located in Hillsborough, N.J., and Manchester, N.H., will close.

 

 

 

“As we stated when we agreed to be the ‘stalking horse,’ the purchase of these assets, at an appropriate price, represents a terrific opportunity to perpetuate our brand and deliver shareholder value,” said Christopher O’Donnell, chief executive of Famous Dave’s. “These restaurants are in good locations, in an important geographic region for Famous Dave’s. We thank the ownership and management team of North Country BBQ for being a strong brand ambassador as well as for their partnership these past several years.”

 

 

 

At the close of the transaction, Famous Dave’s will own 45 barbecue restaurants and franchise another 131 locations in 36 states.

 

 

 

Contact Mark Brandau at [email protected].

 

 

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