The Tender Greens and Tocaya brands emerged from bankruptcy this week with a new owner.
Parent company One Table Restaurant Brands was acquired by lender Breakwater Management LP in a credit bid that was approved by the bankruptcy court on Wednesday, according to court filings.
The total amount of the bid was not clear, but Breakwater was the source of more than $28 million in financing, and provided an additional $3 million to keep operations going for the two brands during the bankruptcy process.
With the deal, Harald Herrmann remains at the helm of One Table Restaurant Brands, which now includes 22 units of Tender Greens and nine units of Tocaya. Some restaurants were shuttered during the bankruptcy process.
When the company filed Chapter 11 in July, Tender Greens had 24 units and Tocaya had 15.
The Los Angeles-based One Table in bankruptcy filings said the two brands failed to fully recover from the “catastrophic” pandemic.
The two brands came together in an unusual business combination in 2021, with Breakwater as an investor at the time. The move was designed to create synergies. An exclusive third-party delivery deal for Tocaya, however, ended up causing serious financial harm.
Herrmann said the closures were unfortunate but necessary given some cannibalization apparent in some markets.
Now, he said, the brands will be able to move ahead with “a vibrant partner to the management team and business.”
Once bankruptcy proceedings are wrapped up, Herrmann said, “We’re looking forward to 2025 and preparing the business for a new year and the other side of the bankruptcy and sale process, which has been quite distracting.”
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