News

Daphne's acquires Noon out of bankuptcy

October 17, 2018

Two months after Noon Mediterranean filed for Chapter 11 bankruptcy protection, Elite Restaurant Group has announced that it has acquired the brand and will transform the 12-unit chain into Daphne's-branded stores. 

"We are looking to turn these units into hybrid stores, where we will keep Noon's build-you-own bowls," Elite Restaurant Group's President Michael Nakhleh, said in the release. "However, we will enhance the customer's experience by including Daphne's signature bowls."
 
The deal, which should go through within 60 to 90 days, 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.
 
ERG will maintain its 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.
 
ERG, which purchased Daphne's earlier this year, stripped "California Greek" from the name and revamped the decor and menu. It also 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.