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Bennigan's May Begin Again

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By MICHAEL SASSO

msasso@tampatrib.com

Published: October 24, 2008

Bennigan's may have new life under the ownership of an Atlanta-based investment firm.

This week, Atalaya Capital acquired the Bennigan's restaurant name and rights to develop the restaurant concept out of bankruptcy court from its owner, S&A Restaurant Corp. of Dallas. Atalaya hopes to sell new Bennigan's franchises and help prospective and current franchisees reopen up to 60 Bennigan's that have been closed since S&A Restaurant Corp. filed for Chapter 7 bankruptcy court liquidation in July.

Among other changes, the new owner is planning to change the Bennigan's concept to focus more on its bars and pub-type food, such as sandwiches, onion rings and appetizers, the managing director of Atalaya Capital told the Associated Press.

More than 60 closed Bennigan's locations are being bid for sale or lease in an upcoming auction conducted by real estate firm NRC Realty Advisors. Atalaya is hoping people the company is working with will purchase or lease some of those locations and reopen them as Bennigan's, said Doug Benham, a consultant hired to assist Atalaya.

The only Bennigan's still open locally is at Channelside Bay Plaza in Tampa. The owner of that unit, Mitch Walker, is hoping to reopen some of the other Bay area locations.

Atalaya was a senior secured creditor of S&A.

As part of the deal, Atalaya forgave about $12 million that S&A owed the company.

Atalaya also made a payment to the bankruptcy estate, Benham said. A bankruptcy court judge approved Atalaya's acquisition of the franchising system this week.

Reporter Michael Sasso can be reached at (813) 259-7865.

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