The owner of Dick’s Wings & Grill said Monday that it plans to buy the shrinking breastaurant chain Tilted Kilt Pub & Eatery.
Terms of the deal were not disclosed, but the structure is complex.
SDA Holdings, owned by Fred Alexander, a board member at Dick’s parent company Arc Group, has agreed to purchase Tilted Kilt, a chain known for its scantily-clad kilt-wearing servers. SDA is receiving a loan for the acquisition from Seenu Kasturi, Arc Group’s CFO and chairman.
SDA will then turn around and sell Tilted Kilt to Arc Group, which is based in Jacksonville, Fla., once Arc has the funding in place for the deal.
Arc operates 23 Dick’s locations in Florida and Georgia, including three concession stands.
Arc is led by CEO Richard Akam, a former CEO of Hooters of America who spent time with Twin Peaks, First Watch and Raving Brands before becoming CEO of Arc in 2013.
The deal gives Arc, Akam and Kasturi a chain that has seen significant franchise closures in recent years.
The number of U.S. franchise locations declined 36% last year, to 51 from 80 the year before, according to Technomic data. The chain currently operates 47 locations in the U.S. and Canada, according to Arc Group.
By structuring the deal, SDA will be able to hold the chain until Arc has the ability to buy the company. Kasturi said that Arc is “in the process of finalizing a financing plan” to make the deal. He said that the deal should be complete “within the next few months.”
“I am Arc Group’s biggest fan and have always supported the company, both financially and otherwise, whenever helpful or needed,” Kasturi said in a statement.