GEN Restaurant Group signs LOI to sell 47 US restaurants to Chubby Group for $100 million
GENK•GEN Restaurant Group signed a binding LOI to sell operations at 47 US restaurants to Chubby Group for $100 million. GEN will retain its brand and Korean CPG business, and aims to cut about $160 million in lease liabilities and eliminate outstanding debt.
1. Sale and transition
GEN Restaurant Group signed a binding LOI to sell operations at 47 US restaurants to Chubby Group for $100 million. GEN will retain the GEN brand and its Korean CPG business, keeping about three restaurants for training and R&D support. Chubby will take over the locations in four phases over 12 months, while GEN keeps operating profits until each site transitions. Closing is targeted within 30 days.
2. Debt and note terms
The deal aims to cut roughly $160 million of lease liabilities, add a term note receivable and enable GEN to eliminate outstanding debt. GEN can convert any unpaid term note balance into Chubby equity at a $1.5 billion valuation.
