Investment firm Atalaya Capital Management has obtained approval from a federal bankruptcy court to buy Bennigan’s Franchising Co., the parent company of the remaining Bennigan’s franchisees that survived a Chapter 7 bankruptcy filing initiated by Bennigan’s parent company, S&A Restaurant Corp., earlier this year.
Bennigan’s Franchising Co. was formed to support Bennigan’s remaining franchise restaurants and operations.
In its planned acquisition of the Bennigan’s franchise-holding company, Atalaya intends to purchase the company’s equity and trademarks, as well as its Bennigan’s and Steak & Ale brands.
A spokesman familiar with the deal says Atalaya intends to partner with Bennigan’s remaining franchisees to grow their current business while also seeking out new franchisees to reopen Bennigan’s locations that were closed after S&A Restaurant’s bankruptcy filing.
Even though the Steak & Ale brand was previously corporate-owned and closed in its entirety during the bankruptcy, a spokesman for parties involved in the proposed sale says Atalaya intends to acquire the brand and its trademark with the intent of leaving an option open in the future for franchisees to open independently-operated Steak & Ale restaurants.