Franchising

Investors acquire Krystal

Photo: Provided/file

May 22, 2020

Krystal Restaurants LLC said it was acquired Monday this week bia funds managed by affiliates of Fortress Investment Group LLC and its operating partner, Golden Child Holdings. The brand filed for bankruptcy this past January as part of its reorganization and also went up for sale.

The price of the acquisition was not disclosed. 

"The new partnership is excited to continue growing the brand, maintaining an overriding focus on enhancing customer experience," Angela Johnson, vice president of Marketing of Krystal Restaurants, said in a press release. "Even during this unusual time, our iconic brand continues to perform well and we see exceptional opportunities for growth looking ahead."

Founded in 1998, Fortress Investment Group is a global investment manager with offices in Atlanta and approximately $43.5 billion of assets under management (as of Dec. 31, 2019). Golden Child is an active investor and manager in the restaurant sector and has extensive turnaround experience. Both have strong ties to the brand and the American South, where most of Krystal's locations are situated. 

Effective immediately, Thomas Stager, will take over operations as president. He has led successful turnaround assignments in both franchisee and franchisor sectors with large brands including Pizza Hut and Arby's, according to the release. He's replacing former President and COO Tim Ward, who along with former CFO Bruce Vermilyea, are no longer with the company. More company plans will be announced in the near future. 

The brand was founded in 1932 in Chattanooga, Tennessee, and now has 300 stores in 10 states. Its support center is in Atlanta.

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