Industry News | February 17, 2010

Bankrupt Jack in the Box Units Get a Stalking Horse

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At the offices of National Franchise Sales, following the sealed bid deadline of February 4 for 70 California Jack in the Box units, Beverly N. McFarland, Chapter 11 Trustee for the bankruptcy estate of Debtors Central Valley Food Services Inc., Food Service Management Inc., Kobra Associates Inc., and Sierra Valley Restaurants Inc., selected three bids—a group led by Ben Nematzadeh for the Fresno area, a group led by Anil Yadav for the Sacramento area, and a group led by Romesh Japra for Eureka and Crescent City—as the Stalking Horse bidders. These three bidders produced combined bids of over $27 million.

The Stalking Horse bidders will now compete with other bidders in a live auction slated for February 23 and 24 in Sacramento. As Stalking Horse bidders, these bidders are entitled to a "breakup fee" if they are not determined to be the highest and best bid in the live auction.

The sale will be conducted in connection with the Chapter 11 Bankruptcy proceedings of these debtors, and will require bankruptcy court approval.

The National Franchise Sales team consists of asset recovery specialist Alan Gallup, NFS vice president Michael Ingram, and former Jack in the Box executive Helen Trent.