Dick’s Wings owner to buy Tilted Kilt

Arc Group will acquire the struggling breastaurant chain in a complex deal.
Tilted Kilt/Fishman PR

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.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.


Exclusive Content

Emerging Brands

5 pre-emerging restaurant brands ready for takeoff

These small concepts are still proving out their ideas, but each shows promise as a potential candidate for the next generation of emerging chains.


This little-known iPhone feature could change restaurant ordering

Tech Check: Almost every customer has a POS in their pocket. Can mini mobile apps get them to actually use it?


Red Lobster gives private equity another black eye

The Bottom Line: The role a giant sale-leaseback had in the bankruptcy filing of the seafood chain has drawn more criticism of the investment firms' financial engineering. The criticism is well-earned.


More from our partners