Nation’s Restaurant News:
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.