Garden Fresh cancels auction, will seek court OK of lenders’ bid

By Caroline Salls

Pittsburgh, Dec. 29 – Garden Fresh Restaurant Corp. cancelled the Jan. 3 auction for its assets and will ask the U.S. Bankruptcy Court for the District of Delaware to approve a sale to stalking horse bidder GFRC Holdings LLC, according to a notice filed Dec. 29.

As previously reported, the stalking horse bid calls for Garden Fresh to sell its business to second-lien lenders. The stalking horse bidder was entitled to credit bid the amount of all outstanding loan obligations.

The company said no additional qualified bids were received.

The sale hearing is scheduled for Jan. 9.

Based in San Diego, Calif., Garden Fresh operates 128 restaurants in 15 states under two brand names: Souplantation and Sweet Tomatoes. The company filed bankruptcy on Oct. 3 under Chapter 11 case number 16-12174.

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