US Investment Group completes – crisis anniversary, QSR acquisition.
Amidst the Covid-19 crisis sweeping the US hospitality industry investment funds continue to eye up bargains. Last week saw Fortress Investment Group LLC and operations partner, Golden Child Holdings acquire Krystal Restaurants.
Krystal Restaurants, comprising 300 outlets in 10 states, has announced it has been wholly acquired through funds managed by affiliates of Fortress Investment Group and Golden Child Holdings.
Krystal Restaurants had filed in US courts for bankruptcy in January as part of a restructuring plan and at the same time put itself on the market for sale. Terms and price of the acquisition were not made public, but the fact it took place signals investment funds do see opportunity in the US QSR sector.
Krystal Restaurants President and COO Tim Ward and CFO Bruce Vermilyea were both released from their roles and Thomas Stager, takes over as president with immediate effect.
Stager has previously taken the helm with similar acquisitions where fast turnarounds have been the priority. He has led large brand teams including Pizza Hut and has extensive experience as both franchisee and franchisor.
Founded in 1998, Fortress Investment Group is a global investment manager with offices in Atlanta and approximately $43.5 billion of assets under management.
Golden Child is an active investor and manager in the restaurant sector and has extensive turnaround experience. Both have strong ties to the brand and the American South, where most of Krystal’s locations are situated.
Krystal Restaurants was originally founded in October, 1932, in Tennessee, during the first years of the Great Depression. Founders Rody Davenport Jr. and partner J. Glenn Sherrill believed that even in a severe economic upheaval, “People would patronize a restaurant that was kept spotlessly clean, where they could get a good meal with courteous service at the lowest possible price.”
Being rescued at the onset of the financial upheaval surrounding Covid-19 might signal a return to the founders core values.
It might also signal that similar activity in the UK QSR market adding fuel to our forecast – Restaurant acquisition frenzy looms.
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