Daphne’s Inc. Acquires Noon Mediterranean Of Out Bankruptcy
October 18, 2018 // Franchising.com // Los Angeles - Today, Daphne’s Inc. announced that it has acquired Noon Mediterranean out of bankruptcy. Under the agreement, Daphne’s parent, Elite Restaurant Group (based in Los Angeles) will rebrand Noon Mediterranean’s 12 units under the Daphne’s Banner.
“We are looking to turn these units into hybrid stores, where we will keep Noon’s build-you-own bowls,” says Elite Restaurant Group’s President, Michael Nakhleh. “However, we will enhance the customer’s experience by including Daphne’s signature bowls.”
The 12 units are throughout the states of Texas, Pennsylvania and Massachusetts. The deal is expected to go through within 60 to 90 days.
The deal included more than $731,000 in cash and up to $100,000 in post-bankruptcy costs, in addition to 2-percent equity in Daphne's Inc. going to creditors, along with rent for assumed locations.
The deal will grow Daphne’s to 36 units - 22 existing Daphne’s, 12 converted locations, plus two new units scheduled to open in the next 60 days.
According to the bankruptcy filing: After the close of the deal, Daphne’s will have no debt, and will generate annual revenue of $27 million, according to Noon's bankruptcy filing.
ERG (Elite Restaurant Group) will maintain their assembly-line format, as opposed to Daphne’s traditional counter service. Around 150 employees in stores and at Noon’s headquarters will remain on the payroll.
The purchase comes two months after Noon Mediterranean filed for Chapter 11 bankruptcy protection.
With the purchase of Daphne’s this year, “California Greek” has been stripped from its name, the look and menu have been revamped and Elite Restaurant Group has introduced Daphne’s-branded gyro kits at 90 Costco locations on the West Coast.
Since acquiring Slater’s 50/50, Elite Restaurant Group has helped the restaurant chain expanded to four additional states outside of its California base.
Last month, the company entered into a deal to purchase the 17-unit Patxi’s Pizza from private-equity firm KarpReilly LLC.