Four Groups Pay $39M For Jack In The Box Restaurants

Sacramento Business Journal:

Four investment groups are the top bidders for the 66 Jack in the Box restaurants in Central and Northern California, previously owned and operated by developer and restaurateur Abe Alizadeh.

The four buyers — including Anil Yadav, who will take over the Sacramento-area outlets — will pay a combined $39 million for the restaurants, according to National Franchise Sales. Last month, the so-called stalking horse bids were $27 million for the restaurants.

Cash-strapped Alizadeh and his companies, including Kobra Associates and Sierra Valley Restaurants Inc., lost the fast-food franchise as part of his corporation’s Chapter 11 bankruptcy petition. Alizadeh, who developed numerous office buildings and shopping centers in the region, started his business career as a Jack in the Box franchisee, and later expanded his operations.

But the economy caused Alizadeh to lose many of his businesses, as he missed bank payments and lenders foreclosed on properties.

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