Magic Brands, LLC, parent of Fuddruckers and Koo Koo Roo restaurant brands, announced today that it has received bankruptcy court approval to reject the 2007 agreements related to the interim management and contemplated sale of its Minnesota restaurants to R.J. Management LLC.
"We are pleased with the court's ruling and its recognition of the fact that the Minnesota restaurants are and always have been corporate-owned locations, not franchises," said CEO Peter Large. "This was a unique situation that does not affect our franchised restaurants. Magic Brands continues to be committed to and supportive of its relationship with franchisees."
The ruling relates to a transaction initiated in 2007 that ultimately never closed. In January 2007, Magic Brands and R.J. Management entered into a letter of intent for the sale of six restaurants in Minnesota to be consummated in two phases. However, as the bankruptcy court found, the transaction never closed and R.J. Management was not a franchisee in Minnesota or an owner of the assets. Instead, the court recognized that R.J. Management was operating the restaurants under a management agreement.
The ruling should facilitate Magic Brands' efforts to maximize value for all creditors by including two of the Minnesota locations in the sale of its assets.
For further information regarding the sale transaction and restructuring process, please contact the Company's information line at 877-340-2764 or visit www.fuddruckersrestructures.com.
About Fuddruckers
Based in Austin, Texas, Magic Brands, LLC currently operates 62 Fuddruckers locations in 11 states and 3 Koo Koo Roo restaurants in California. An additional 135 Fuddruckers restaurants are operated by franchisees who are small business owners and multi-unit operators. Since its founding in 1980, Fuddruckers has delivered uncompromised quality and freshness with its own brand of always fresh, never frozen, 100% All-American, premium-cut, vegetarian-fed beef. Fuddruckers 1/3, 1/2, 2/3 and one-pound Fudds Prime™ burgers are grilled to order and placed on a Fuddruckers scratch-baked bun made fresh daily in Fuddruckers restaurant bakeries — ready for guests to pile it high at Fuddruckers Market Fresh Produce bar for a Build Your Own Burger experience like none other.
Contacts:
Anita-Marie Laurie
Maya Pogoda
310-788-2850