Private equity firm wins auction for steak chain

AP News
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Posted: Apr 07, 2011 3:55 PM
Private equity firm wins auction for steak chain

A New York-based private equity fund has won a bankruptcy auction to buy what's left of the Charlie Brown's Steakhouse chain.

Praesidian Capital Opportunity Fund III-A LP offered $9.5 million for the 20 restaurants, including 17 in New Jersey.

The Asbury Park Press of Neptune first reported the deal. A federal bankruptcy court hearing to approve the sale is scheduled for April 11.

The restaurant chain's parent company, Mountainside, N.J.-based CB Holding Corp., filed for bankruptcy protection in November and closed 47 restaurants. The company has since sold off its other chains, Bugaboo Creek and The Office Beer Bar & Grill.

Two former top company officials were sentenced to prison terms earlier this year for directing business to vendors who paid kickbacks.