SAN ANTONIO Texas Souper Salad Inc., the 87-unit buffet chain, has acquired most of the assets of 72-unit Grandy's Inc. from Spectrum Restaurant Group in a bankruptcy court auction.
Terms of the deal were not disclosed, but Souper Salad said it was acquiring one company-owned restaurant, four units managed by Grandy's, and franchise agreements to 67 stores. Super Salad, based here, which is a division of the Sun Capital Partners Inc. private-equity firm.
Lewisville, Texas-based Grandy's, which serves Southern-style food for breakfast, lunch and dinner, has restaurants in Indiana, Oklahoma and Texas.
The deal was approved by the U.S. Bankruptcy Court for the Central District of California, in which Spectrum sought protection from creditors last August.
Souper Salad has units in 12 states, with a concentration in Arizona, Colorado and Texas.
Hazem Ouf, president and chief executive of Souper Salad, said in a statement: "The acquisition of Grandy's sets the stage for the expansion of both concepts and will generate new efficiencies for both brands by reaching out to a larger audience. With a combined footprint of nearly 160 restaurants, the Grandy's acquisition strengthens Souper Salad's market position, enhances career and growth opportunities for employees, and provides new franchise and growth opportunities to both concepts."
Spectrum Restaurant Group of Irvine, Calif., filed in August 2006 for its second Ch. 11 bankruptcy reorganization in three years.
In 2005, Grandy's reported systemwide sales of $60.1 million.