Rupari Food Services anticipates sale of business in June
Rupari Food Services Inc., a producer of branded and private label restaurant-quality barbequed meats, including Tony Roma’s and Butcher’s Prime retail brands, announced that it received court approval, subject to the submission of the agreed upon order, for a final cash collateral order that will provide ample liquidity to finance the company during the sale process. As previously announced, the company and a subsidiary of Carl Buddig & Company entered into an asset purchase agreement for the sale of the company, subject to higher or better bids. The company expects the sale to close in June.
“We are delighted to have achieved these key milestones along our path to a successful sale of our business that maximizes recoveries for our stakeholders, preserves jobs, and provides a seamless transition for our customers and vendors. We appreciate the support of our lenders, creditors’ committee and other key stakeholders,” stated Jack Kelly.
In another development, Romacorp. Inc., the parent company of Tony Roma’s, announced that it entered into a new license agreement with Ruprecht Company, which Rupari says is in violation of the company’s exclusive rights under its license with Romacorp. This comes only one week after Rupari dismissed an adversary complaint without prejudice to refile the complaint in order to facilitate a consensual business solution between Rupari and Romacorp.
“We are very disappointed that Romacorp took this action, which clearly interferes with our exclusive property rights under the Tony Roma’s license and the automatic stay imposed by the Bankruptcy Code. Rupari spent millions of dollars marketing and developing the Tony Roma’s brand over the past years with great success. We believe our license with Tony Roma’s is in full force and effect notwithstanding Romacorp’s wrongful attempt to terminate the license. We intend to pursue all available legal remedies against Romacorp and Ruprecht in consultation with our constituents.” Jack Kelly added.
However, the ultimate legal resolution of the dispute between Rupari and Tony Roma’s has no impact on the company’s operations or supply of product to customers, nor will it impact the timing of the sale of the business in June.
“Buddig remains committed to moving forward with the transaction,” said Bob Buddig.
The bid deadline for competing offers for the Rupari business is May 24, 2017 and a hearing to approve the sale of Rupari’s business is scheduled for June 6, 2017.
Source: Rupari Food Services Inc.