Debtor-In-Possession Financing in Place to Support Restructuring.
Fresh Acquisitions, LLC which operates Furr’s Fresh Buffet©, and several of its affiliates including Buffets LLC and its subsidiaries, which operate Ryan’s©, Old Country Buffet©, Tahoe Joes Famous Steakhouse©, and Hometown Buffet©, filed for Chapter 11 bankruptcy protection earlier today to strengthen their operations and recapitalize their businesses. The companies will have access to additional liquidity through a post-petition debtor in possession loan being extended by VitaNova Brands©.
"As with almost every one of our peers, buffet restaurants took the brunt of the loss of sales during the pandemic and as such, the path to success requires hard choices to be made, including the rationalization of our overall footprint," said Jason Kemp, co-founder and CEO of VitaNova Brands.
Kemp continued, "The precipitous decline in sales at the restaurants resulting from occupancy restrictions and the banning of family-style buffet dining forced the companies to take extraordinary steps, including the closing of multiple locations."
The companies expect to continue operating in the normal course during their chapter 11 cases and believe that a number of the brands – including Furr’s Buffet and Tahoe Joe’s -- can take advantage of the expected post-COVID recovery.
Kemp concluded, "We are looking forward to emerging from bankruptcy as a stronger operator with a focus on the Tahoe Joe’s and Furr’s AYCE Marketplace® banners. These great brands serving great food will create a platform for future growth."
The cases are pending in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division. Documents filed in the case may be found at www.bmcgroup.com/fresh. Gray Reed is acting as legal counsel and B. Riley Advisory Services is the Chief Restructuring Officer and Financial Advisor.
About Fresh Acquisitions LLC and Buffets, LLC
Fresh Acquisitions LLC and Buffets, LLC operate independent restaurant brands and are based in San Antonio, Texas.
About VitaNova Brands
VitaNova Brands© (VNB) is a multi-concept operator of independent restaurant brands, based in San Antonio, Texas. VNB has built a unique and scalable model designed to identify and acquire underperforming restaurant brands, assume full control of operations and strategy, and rapidly improve profitability. Currently, VNB manages all store-level and corporate operations for Togokitchens.com, Zio’s Italian Kitchen, Sushi Zushi, Tahoe Joe’s, and Furr’s AYCE Marketplace. Learn more at https://www.vitanovabrands.com/.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210420006218/en/
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