Landry's to buy Claim Jumper restaurants

Claim Jumper Restaurants LLC, the operator of a chain of 45 western-themed restaurants, received approval at a hearing yesterday to sell the business to Landry's Restaurants Inc. in a transaction valued at $76.6 million.

There are three suburban outlets in Hoffman Estates, Wheeling and Lombard.

Landry's bid included $48.3 million cash, the assumption of $23.3 million in debt, and $5 million in cash to collateralize existing letters of credit. At the auction that Landry's won, the opening cash bid was $27 million from a company formed by Black Canyon Capital LLC and Bruckmann Rosser Sherrill & Co. Black Canyon is an affiliate of the unsecured mezzanine lender, according to court papers.

Landry's purchased Oceanaire Inc., a chain of bankrupt seafood restaurants, following an auction in April.

In addition to $69.5 million in secured debt, Claim Jumper owes $112.5 million on subordinated notes. The petition says assets are worth more than $50 million while debt exceeds $100 million.

The case is In re Claim Jumper Restaurants LLC, 10-12819, U.S. Bankruptcy Court, District of Delaware (Wilmington).