Dive Brief:
- Corbak Acquisition, an affiliate of Wexford Capital, submitted a stalking horse bid last week to purchase Corner Bakery out of bankruptcy for $12 million, according to court filings.
- An auction for the restaurant company is expected to occur next week, according to Bloomberg Law. If another bidder emerges and ends up purchasing the company, Wexford will receive a $750,000 breakup fee.
- Corner Bakery originally filed for Chapter 11 bankruptcy protections in February.
Dive Insight:
Court documents show that BBQ Holdings CEO Jeff Crivello, one of the buyer’s representatives, previously engaged with Jay Pandya to possibly operate the restaurant in connection with a reorganization. Pandya owns Corner Bakery’s parent company, Pandya Restaurant Growth Brands.
The two originally discussed Crivello helping the company raise capital as part of the reorganization or a settlement with SSCP, which holds Corner Bakery’s debt. Crivello also previously discussed with SSCP the possibility of becoming the restaurant’s chief restructuring officer. However, no agreements were reached, and Pandya and Crivello terminated the agreement on May 1.
As CEO of BBQ Holdings, Crivello oversaw MTY Food Group’s acquisition of the company last year for $200 million. Prior to its buyout, BBQ Holdings went on a buying spree, purchasing Village Inn and Bakers Square, Tahoe Joe’s, Granite City and Barrio Queen.
Pandya Restaurant Growth Bands previously purchased Corner Bakery in 2020 from Roark Capital. The new owner’s resources were expected to help Corner Bakery continue to operate during the difficult economic conditions following the start of the pandemic. While sales rose 54% in 2021 to reach $237 million, they were still well below the chain’s 2019 sales of $362 million.
