Earl Enterprises, parent to the Planet Hollywood and Buca di Beppo chains, will acquire bankrupt Bertucci’s Corp., besting an earlier stalking horse offer from an investment firm.
Earl Enterprises, the Orlando, Fla.-based company that also owns the Earl of Sandwich brand, offered to pay more than $3 million in cash, assume $4 million in Northborough, Mass.-based Bertucci’s debt and issue $13 million in second-lien debt as part of the bankruptcy court transaction, the company said.
Bertucci’s, which has 58 casual-dining restaurants in 10 states and the District of Columbia, filed for Chapter 11 bankruptcy in April.
“This deal will allow Bertucci’s to exit Chapter 11, restructuring under new ownership as Bertucci’s Holdings LLC,” Earl Enterprises said in a statement.
Bertucci’s had filed for bankruptcy with a stalking-horse bid from an affiliate of Chicago-based investment firm Right Lane Capital LLC, but the court chose the Earl Enterprises offer.
“The restaurant chain has been following a brief court-approved restructuring and sale process, while still running its day-to-day operations,” the Earl Enterprises statement said, adding the Bertucci’s CEO Brian Wright and chief financial officer Brian Connell will continue in their respective roles.
“We are delighted to announce the ownership of Bertucci’s,” said Robert Earl, founder of Earl Enterprises. “Our love affair with Boston is very deep, and we look forward to continuing business in a thriving market.”
Bertucci’s, which first opened in 1981 in Somerville, Mass., has 29 restaurants in Massachusetts, five in Connecticut, seven in Pennsylvania, four each in in Maryland and New Jersey, three in New Hampshire, two in Delaware, and one each in New York, Rhode Island, Virginia and Washington, D.C.
“Today is a great day for Bertucci’s,” said CEO Wright. “Through the restructuring process, Bertucci’s Holdings clearly saw our vision and wants to build upon the foundation our team has worked so hard to establish.”
Wright joined the company as CEO in 2016, and he brought back the original chef, Rosario Del Nero, to oversee the menu.
Earl Enterprises’ Planet Hollywood International Inc. and its affiliates own and operate more 130 restaurants, including the Café Hollywood concept, in 25 states and internationally.
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