Ignite Restaurant Group Inc. (NASDAQ: IRG) has reached an agreement to sell Joe’s Crab Shack and Brick House Tavern + Tap after filing for Chapter 11 bankruptcy on Tuesday.
KRG Acquisitions Co., an affiliate of San Diego-based private equity firm Kelly Companies, has agreed to purchase the restaurant brands, according to a release. Ignite’s bankruptcy proceedings state KRG’s bid is $50 million. Other interested buyers will be able to challenge the bid at a court-supervised auction.
The sale is expected to close in 60 to 90 days, according to the release.
Locally, Joe’s Crab Shack has locations Fair Lakes, Gaithersburg and Greenbelt. There are about 112 Joe’s Crab Shacks and 25 Brick House Taverns around the country.
Ignite has been pursuing a sale since last year and hired Piper Jaffray & Co. as a financial adviser. But the company has seen several interested buyers drop out after reporting declining sales, Reuters reported. The company saw Joe’s Crab Shack same-store sales fall 14.3…Read the full story from the Washington Business Journal.
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