Rival coffee chain questions Salad and Go’s deal with Dutch Bros

An Arkansas-based drive-thru coffee chain is prepared to contest Salad and Go’s sale of 65 closed locations to Tempe-based Dutch Bros (NYSE: BROS).

Salad and Go entered the Chapter 11 bankruptcy process on Aug. 4 with a deal to sell and transfer the real estate and leases of 65 of its locations to Dutch Bros., a unique move since acquisitions out of bankruptcy often happen in an open auction process. Salad and Go closed all locations – about 70 in Arizona and Las Vegas – at the end of business on Aug. 5.

The deal calls for Dutch Bros (NYSE: BROS) to pay $105 million to buy the buildings and transfer the leases. The beverage chain already paid $10 million as a deposit.

In its court filing, Salad and Go said it held an extensive search for potential buyers but because Salad and Go stores are very unique – 800 square feet to 1,500 square feet, with no dine-in seating, kitchen, hood, grill or fryer. There are only a few operators that could utilize the sites without incurring the material cost, delay, and permitting risk associated with reconfiguring the premises.

This story is posted in partnership with Phoenix Business Journal. Click to read the full story.

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