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Large franchisees have scooped up Fuddruckers, Au Bon Pain and now Taco Cabana in recent days. But owning a brand is quite different, says RB’s The Bottom Line.
The buyer is a newly formed affiliate of Nicholas Perkins, an operator of 13 Fuddruckers units and a contract management company.
He was succeeded on an interim basis by John Garilli, a liquidation specialist and real estate dealmaker.
13 of the remaining 24 unit were sold to an affiliate of the contract management company Perkins Management Services
Securities documents show that no offer has yet been made, but due diligence is underway.
The operator of Fuddruckers and Luby's Cafeteria will sell off its assets in pieces and then dissolve.
Sales and profits plunged last quarter and many restaurants remain closed, but cost cuts led to improved margins at open locations.
The salaries of the remaining home-office employees have been cut 50%.
The diversified restaurant company posted a net loss for its Q1 despite rises in traffic and sales.
The company posted a decline in comps on a drop in traffic for all three of its restaurant brands and announced an outsourcing of several headquarters functions.