Buffets closes four restaurants, agrees to sell properties for $4.99 million

By Caroline Salls

Pittsburgh, Jan. 25 - Buffets Holdings, Inc. requested court approval to sell four restaurant properties for a total of $4.99 million, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, Meridian Investments, LLC has agreed to buy the company's Wichita, Kan., property for $990,000; Andy Yang, Wan B. Liu and Yong Eric Wang have agreed to buy a Lynchburg, Va., property for $2 million; Lucky Property, LLC has agreed to purchase Buffets' Sikeston, Mo., property for $1 million; and Value Place Real Estate Services LLC has agreed to buy a Florence, Ky., property for $995,000.

The buyers will pay a total of $209,500 in broker's fees.

According to the motion, the restaurants on the properties being sold have not been performing adequately, and Buffets said it does not expect them to become profitable.

As a result, the restaurants have been closed and the properties are being sold.

Buffets said no auctions are necessary because it is confident that its extensive pre-bankruptcy marketing process uncovered the most valuable offers for the properties.

A hearing is scheduled for Feb. 13.

Buffets Holdings, a steak-buffet restaurant company based in Eagan, Minn., operates restaurants under the names Old Country Buffet, HomeTown Buffet, Ryan's and Fire Mountain. The company filed for bankruptcy on Jan. 22, and its Chapter 11 case number is 08-10141.

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