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Southern fast-food chain Krystal announced it’s been acquired by Fortress Investment Group, owned by SoftBank, after the chain filed for bankruptcy in January.
Krystal was sold to Fortress for $48 million, according to QSR magazine, in a transaction that involved a $27 million credit bid and the assumption of up to $21.5 million in liabilities.
The acquisition was effective May 18, the chain said. Both Fortress and its partner, Golden Child Holdings, have strong ties to the South and the Krystal brand. Fortress Investment Group has approximately $43.5 billion of assets under management with offices in Atlanta.
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“The new partnership is excited to continue growing the brand, maintaining an overriding focus on enhancing customer experience,” Krystal VP of Marketing Angela Johnson said. “Even during this unusual time, our iconic brand continues to perform well and we see exceptional opportunities for growth looking ahead.”
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SFTBY | SOFTBANK GROUP | 21.34 | +0.74 | +3.62% |
Krystal also announced Thomas Stager will be taking over as company president, effective immediately. Stager has worked with large restaurant brands like Pizza Hut and Arby’s.
Krystal Restaurants LLC is the original Southern fast-food chain, founded in Chattanooga, Tennessee, in 1932. Krystal has more than 300 restaurants in 10 states and employs more than 6,000 workers.
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Krystal Restaurants LLC did not respond to FOX Business’ request for comment.
