MINNEAPOLIS (BUSINESS WIRE) -- Famous Dave's of America, Inc. (NASDAQ: DAVE) today announced that it was named the winning bidder for seven of the nine restaurants of North Country BBQ Ventures, LLC for cash consideration of approximately $6.8 million, after taking into account an adjustment for amounts owed to the Company. Based in New Providence, New Jersey, North Country was one of the Company's largest franchisees with restaurants located in New Jersey, New Hampshire and New York.
The transaction was the culmination of a "stalking horse" asset purchase bid submitted last December under Section 363 of Chapter 11 of the U.S. Bankruptcy Code. At an auction that took place this past Wednesday, Famous Dave's of America, Inc. was declared the winner with the highest and best bid subject to bankruptcy court approval. A sale hearing took place yesterday before the United States Bankruptcy Court for the District of New Jersey, and approval was granted. The closing is expected to take place today. The restaurants, which remained open throughout the process, will now become company-owned locations.
The seven restaurants are located in New York (Smithtown and Westbury), and New Jersey (Mountainside, Brick Township, Hamilton, New Brunswick and Metuchen, NJ). North Country's remaining two locations, located in Hillsborough, NJ, and Manchester, NH, are expected to be closed. With the exception of certain lease obligations related to the acquired restaurants, the agreement does not require the Company to assume any of North Country's liabilities.
"As we stated when we agreed to be the 'stalking horse', the purchase of these assets, at an appropriate price represents a terrific opportunity to perpetuate our brand and deliver shareholder value," said Christopher O'Donnell, chief executive officer of Famous Dave's. "These restaurants are in good locations, in an important geographic region for Famous Dave's. We thank the ownership and management team of North Country BBQ for being a strong brand ambassador as well as for their partnership these past several years."
Famous Dave's of America, Inc. develops, owns, operates and franchises barbeque restaurants. As of today, the company owns 45 restaurants and franchises 131 additional units in 36 states. Its menu features award-winning barbequed and grilled meats, an ample selection of salads, side items and sandwiches, and unique desserts.
Statements in this press release that are not strictly historical, including but not limited to statements regarding the timing of our restaurant openings and the timing or success of our expansion plans, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, which may cause the company's actual results to differ materially from expected results. Although Famous Dave's of America, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectation will be attained. Factors that could cause actual results to differ materially from Famous Dave's expectation include financial performance, restaurant industry conditions, execution of restaurant development and construction programs, franchisee performance, changes in local or national economic conditions, availability of financing, governmental approvals and other risks detailed from time to time in the company's SEC reports.
SOURCE: Famous Dave's