New owner emerges for Max & Erma's
August 20, 2010
by Meat&Poultry Staff
COLUMBUS, Ohio – American Blue Ribbon Holdings LLC, a subsidiary of Fidelity Newport Holdings LLC, will become the new owner of Max & Erma’s Restaurants Inc. The sale to Fidelity Newport Holdings, the owner of Bakers Square and Village Inn restaurants, was approved by a judge in bankruptcy court in Pittsburgh Wednesday for $27.5 million, nearly $3 million higher than the amount being offered in a competing bid, according to The Columbus Dispatch
The new owner plans to keep the restaurant chain’s headquarters in Columbus. The deal is expected to close this month.
Max & Erma’s was acquired in 2008 for $10.2 million by Pittsburgh contractor Gary Reinert Sr. It filed for Chapter 11 bankruptcy protection from creditors last October after National City Corp. secured a $15.9 million cognovit judgment against the dining chain on a $23 million loan.
Max & Erma's, founded in German Village nearly 40 years ago, operates 87 restaurants in Eastern and Midwestern U.S.