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. S.B. Restaurant Co. will be purchased by CM7 Capital Partners LLC, according to reports based on its bankruptcy filing in Santa Ana. CM7 is an affiliate of Dallas-based Chalak Mitra Group, which runs about 260 restaurants across several brands.
The buyer will pay nearly $1.3 million and assume certain liabilities, according to Bloomberg.
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 LLC, which also owns a majority stake in the Irvine-based Habit burger chain, formerly held a stake in S.B. Restaurant. The Elephant Bar chain has 29 restaurants in seven states. It had closed a third of its previous total, including two in OC, by June 16, when it filed for bankruptcy. The deal was to close Aug. 29.
