July 26, 2010
After a day-long auction held on June 17, 2010, Luby’s Inc. emerged as the highest and best bidder for substantially all of the assets of Magic Brands, LLC, and certain of its affiliates. The transaction will result in the payment of more than $61 million to the estate. Magic Brands’ Official Committee of Unsecured Creditors was led during active bidding at the auction by partners James S. Carr and Eric R. Wilson.
The purchase price obtained for the Debtors’ assets exceeded the original bid by $21 million. The Kelley Drye team worked with the Committee, the Debtors and Luby’s to achieve a smooth and efficient closing of the transaction, which occurred on July 26, 2010. Post-closing, the Kelley Drye team is continuing efforts to ensure a maximum return to unsecured creditors.
Headquartered in Austin, Texas, the Debtors own, operate and franchise fast casual dining establishments under the Fuddruckers™ and Koo Koo Roo™ names. The first Fuddruckers™ restaurant – purveyors of the “World’s Greatest Hamburger™” – opened in San Antonio, Texas in 1980, and grew into a national chain with a presence in 32 states, Puerto Rico, the District of Columbia, and Canada. Koo Koo Roo™, which focuses on chicken dishes, was acquired by the Magic Brands entities in 2003, and operated exclusively in Southern California.
The Kelley Drye team handling the Magic Brands case include partners James S. Carr and Eric R. Wilson, associates Dana P. Kane, Jason R. Adams, Gilbert R. Saydah and Jennifer D. Raviele, and paralegal Marie Vicinanza.