Daphne’s Greek Café announced that it will emerge from Chapter 11 through a sale of substantially all of its operating assets to a buyer sponsored by Trefethen Advisors LLC. Under the proposed transaction, Trefethen will form a new holding company to acquire the assets, and assume certain liabilities. The transaction is expected to close early in August, and is subject to the satisfaction of certain customary closing conditions, including approval of the sale by the Bankruptcy Court.
Following the transaction, Daphne’s will emerge as a well-capitalized and significant long-term player in the competitive fast-casual dining industry. In addition to making its initial investment, Trefethen will capitalize the company with additional equity capital and a new, undrawn liquidity facility. The ongoing support of the company’s 1,000-plus employees, many loyal customers, and numerous suppliers will continue to contribute to the success of the business.
Daphne’s also announced that following the close of the transaction, William Trefethen will take on the role of CEO of Daphne’s. Trefethen, an experienced executive and entrepreneur, has founded a number of companies, including Trefethen Advisors LLC and American Commercial Capital LLC, which was sold to Wells Fargo in 2001 and operates as Wells Fargo Restaurant Finance. Trefethen has significant experience in the restaurant and multiunit retail industry as a principal investor as well as an advisor to public and private companies on issues related to mergers and acquisitions, corporate finance, restructuring, and strategic planning. He will be supported by an experienced management team consisting primarily of legacy Daphne’s management.
“My colleagues and I look forward to working with the valued employees at Daphne’s to create one of the market’s leading fast-casual dining companies,” Trefethen says. “Daphne’s has been a mainstay in the marketplace over the last 19 years, and has built a loyal customer base by serving great tasting, Greek-inspired dishes. Our primary goal is to strengthen the brand through careful growth and a strategic marketing plan that will enhance guests’ dining experiences through new menu offerings, value pricing, and new promotions featuring Daphne’s unique offering of fresh, healthy, Greek-inspired dishes.”
“On behalf of all of the employees of Daphne’s, I am excited to partner with our new ownership group, which is well-positioned to support the strategic initiatives necessary to build on the company’s strong position in the marketplace as the country’s largest Greek-inspired fast casual chain,” says Greg Hernandez, Daphne’s vice president of operations.
