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October 25, 2004
Chevys Sold
Chevys Inc., the Emeryville, Calif.-based Mexican restaurant operator, has agreed to be purchased by the parent company of rivals Acapulco and El Torito.
If approved by a federal bankruptcy court in Oakland, Calif., the deal would transfer the assets of Chevys to Real Mex Restaurants Inc. of Long Beach. Real Mex intends to continue operating existing Chevys restaurants, as well as the related Fuzio Universal Pasta restaurants, the company said in a statement.
The acquisition would be part of a $90 million-plus deal, said Michael Gottfried, the lawyer representing Chevys in bankruptcy court. Chevys declared bankruptcy in October 2003. "There have been other interested parties," he said. "The debtors chose to go forward with this [proposal] because they thought it was the highest and best offer." The deal is expected to close by the end of the year, Real Mex said.
"The acquisition finalizes our reorganization process at Chevys, and our restaurants and employees will now be able to benefit from the resources Real Mex Restaurants has to offer," said Ron Maccarone, the president and chief executive officer of Chevys, in a statement.
Founded in Alameda, Calif., in 1986, Chevys has grown to include 123 restaurants and 6,000 employees. At one point PepsiCo owned the company, which was later sold to J.W. Childs Associates LP, a Boston investment firm. The bankruptcy filing followed the collapse of a deal in late 2003 to sell Chevys to a Dallas-based company.
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