Bartlett Management Services, Inc.
Chain of 30 Kentucky Fried Chicken franchises located in IL, WI, and IN.
Costs involved with equipment leases, a management/advisory agreement, and real property leases, as well as the recession of 2008-2010, resulted in a decrease in revenue, and an inability to sustain positive cashflow, ultimately leading the Company to seek Chapter 11 bankruptcy protection.
Equity Partners was retained to seek an investor, joint venture partner or buyer for the operation and conducted an exhaustive marketing process that resulted in 70 groups conducting due diligence, with 9 of those groups engaging in significant discussions about the opportunity. In order to become a qualified bidder, interested groups were required to not only show financial wherewithal to purchase the operation, they also had to be qualified by KFC Corporate to be a franchisee. The Debtor’s professionals also had to negotiate revised building leases with 13 landlords that would be acceptable to a new buyer.
Ultimately 3 groups submitting offers by the bid deadline, and 2 of those groups were qualified by KFC Corporate to participate in the auction. After numerous rounds of bidding, EYM Foods II, LLC was deemed the winning bidder and proceeded to close and operate the restaurants.