Freebirds’ owner to buy ailing Fuddruckers in $40M deal
Magic Brands LLC, an Austin-based restaurant group, is selling almost all of its assets, including Fuddruckers and Koo Koo Roo restaurant brands, to Tavistock Group in a $40 million transaction.
Tavistock Group owns and operates Austin-based Freebirds World Burrito, which has 32 locations and plans to open an additional 20 units this year. Other Tavistock restaurant brands include ZED451, Cafe del Rey, Napa Valley Grille, Blackhawk Grille, California Cafe and Sapporo.
As part of that purchase agreement, Magic Brands and some of its affiliates have voluntarily filed for Chapter 11 bankruptcy protection, which will result in the closure of some Fuddruckers, according to an announcement from Magic Brands.
Magic Brands said it will use the Chapter 11 bankruptcy “to terminate certain Fuddruckers leases and will close 24 corporate-owned Fuddruckers restaurants by April 30, 2010.”
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