The Costa Mesa-based parent of the Elephant Bar restaurant chain is slated to be bought out of bankruptcy and will be operated by a Dallas-based restaurant company.
According to reports based on its bankruptcy filing in Santa Ana S.B. Restaurant Co. will be purchased by CM7 Capital Partners LLC, an affiliate of Chalak Mitra Group, which runs about 260 restaurants across several brands.
The buyer will pay $1.25 million and assume certain liabilities. S.B. Restaurant listed $46 million in debt on its bankruptcy filing, the reports said.
An affiliate of Greenwich, Conn.-based private-equity firm KarpReilly LLP, which also owns a majority stake in the Irvine-based Habit burger chain, kept 77% of S.B. Restaurant.
The Elephant Bar chain has 29 restaurants in seven states. It had closed a third of its previous total by June 16, when it filed for bankruptcy.
Included in the closings were the chain’s two Orange County locations.
The deal was to close August 29.
