Magic Brands, LLC Receives Approval of First-Day Orders in Connection with Sale
Magic Brands, LLC, parent of the Fuddruckers and Koo Koo Roo restaurant brands, announced today that its has received Bankruptcy Court approval to, among other things, pay pre-petition employee wages, salaries and benefits during its voluntary restructuring under Chapter 11.
Wages Continue Uninterrupted
Vendors to be Paid for Goods and Services Going Forward
Magic Brands, LLC, parent of the Fuddruckers and Koo Koo Roo restaurant brands, announced today that its has received Bankruptcy Court approval to, among other things, pay pre-petition employee wages, salaries and benefits during its voluntary restructuring under Chapter 11. The Company also received permission to honor its various customer programs, including use of gift cards.
“Approval of our first-day motions sets the Company on a very strong footing. This relief ensures that normal operations will continue at all Fuddruckers restaurants”
The Court also approved on an interim basis financing from Wells Fargo Capital Finance, Inc., which will provide the Company with sufficient liquidity to continue operations, pay employees, and purchase goods and services going forward.
Fuddruckers Chief Executive Officer Peter Large said he was pleased with the Bankruptcy Court’s prompt approval of its “first-day” motions and interim DIP financing.
“Approval of our first-day motions sets the Company on a very strong footing. This relief ensures that normal operations will continue at all Fuddruckers restaurants,” said Mr. Large.
“Our restaurants are open and running as usual. Vendors will be paid for all goods furnished and services provided after the April 21, 2010 filing date. Employee wages and benefit programs will continue as before.”
As previously announced, Magic Brands LLC signed an asset purchase agreement with Tavistock Group to sell substantially all of its assets in a $40-million going concern transaction. As required under the agreement and to facilitate the sale, the Company filed voluntary petitions for reorganization in the District of Delaware in Wilmington on April 21, 2010.
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 13 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.
About Tavistock Group
Tavistock Group is an international private investment company founded by Joe Lewis.
