An Arkansas-based drive-thru coffee chain is prepared to contest Salad and Go’s sale of 65 closed locations to Tempe-based Dutch Bros.
Salad and Go entered the Chapter 11 bankruptcy process on Aug. 4 with a deal to sell and transfer the real estate and leases of 65 of its locations to Dutch Bros., a unique move since acquisitions out of bankruptcy often happen in an open auction process. Salad and Go closed all locations – about 70 in Arizona and Las Vegas – at the end of business on Aug. 5.
The deal calls for Dutch Bros to pay $105 million to buy the buildings and transfer the leases. The beverage chain already paid $10 million as a deposit.
In its court filing, Salad and Go said it held an extensive search for potential buyers but because Salad and Go stores are very unique – 800 square feet to 1,500 square feet, with no dine-in seating, kitchen, hood, grill or fryer. There are only a few operators that could utilize the sites without incurring the material cost, delay, and permitting risk associated with reconfiguring the premises.
Read more of this story from the Business Journal.
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