DALLAS A U.S. bankruptcy court has approved Atalaya Capital Management’s acquisition of Bennigan’s Franchising Co. LP, including the company’s equity, trademarks and other assets. The deal, which includes the Tavern and Steak & Ale brands, is expected to close by Oct. 31, Atalaya said.
The U.S. Bankruptcy Court for the Eastern District of Texas in Sherman is working through the Chapter 7 bankruptcy liquidation filings by a number of subsidiaries of Metromedia Restaurant Group, which abruptly closed its company-owned Bennigan’s and Steak & Ale units with the filing.
More than 130 franchised Bennigan’s remain open.
Joel Holsinger, a partner at Atalaya Capital, said in a statement Wednesday: “We’re thrilled to have reached an agreement with the bankruptcy court for the acquisition of Bennigan’s Franchising Co., and our goal is to continue to partner with existing franchisees, as well as new ones, to grow the Bennigan’s Grill & Tavern brand.”
Bennigan’s is working with both existing and new franchisees to reopen as many as 60 shuttered company-owned restaurants as well as open new franchisee-owned locations both domestically and abroad.
Bennigan’s said it would soon announce a new culinary program and appoint a marketing consultant to help reposition the brand. The company hinted at the introduction of a new fast-pub prototype and concept.
Vince Runco, interim president and chief executive of Bennigan’s Franchising Co., said: “We continue to build the franchisor’s infrastructure to support our franchisees and grow the system. A rejuvenated Bennigan’s will continue to offer the same great food and fun atmosphere that our patrons love while improving upon their overall dining experience.”
