Despite current Chapter 11 proceedings, Joe’s Crab Shack restaurant group is still refusing a prominent Houston hospitality group’s bid for purchase of the financially failing company.
Houston-based Ignite Restaurant Group is shunning the offer from Tillman Fertitta’s Landry’s restaurant empire, although Fertitta’s bid is higher than another any others.
In the plan, Ignite reaffirmed its intent to sell its restaurant chains, which also includes Brick House Tavern + Tap, to KRG Acquisitions Co.
The company, an affiliate of San Diego-based firm Kelly Cos., agreed last month to pay $50 million for both brands.
In regard to the transaction, causing a spark of controversy, Landry’s feels it will be a better fit for Ignite than San Diego, Calif.-based KRG Acquisitions Co.
“Debtors have ‘spared no expense’ to defeat and reject a better deal from Landry’s that has been theirs for the taking,” he wrote in a letter, apparently quoting John Hammond from “Jurassic Park I.”
“And we saw how that turned out,” he continued, referring to the disaster ending of the 90s film.
Landry’s operates more than 50 brands including Landry’s, McCormick & Schmick’s and Morton’s The Steakhouse.
Kelly Cos. operates more than 100 restaurants in 22 states, including Fox & Hound, Champps, Baileys and Grady’s BBQ.