Arkansas-based 7 Brew outbid Dutch Bros for 73 shuttered Salad and Go locations, including dozens in Arizona.
According to documents filed in the Southern District of Texas Bankruptcy Court, 7 Brew will pay about $143 million for the assumption of Salad and Go’s leases. Salad and Go had previously agreed to a sale to Dutch Bros worth $105 million.
At an auction between the parties, 7 Brew outbid Dutch Bros, and Dutch Bros did not submit a topping bid. Of the locations 7 Brew bid for, 41 are in Arizona, 20 are in Texas, six are in Nevada and six in Oklahoma, according to court documents. The sale does not cover every Salad and Go location. Some locations will be sold separately or in smaller groups.
Salad and Go abruptly closed all its locations
on Aug. 5. That same day, a purchase agreement with Tempe-based Dutch Bros was filed with the court.
After the deal with Dutch Bros was made public, lawyers for 7 Brew attended a court hearing, claiming they had made a better bid to buy the shuttered drive-through sites. At the time, 7 Brew’s offer had not been made public.
According to documents filed by Salad and Go, it assessed 16 potential buyers before filing for bankruptcy and determined that three, Dutch Bros and two competitors, were the most likely candidates. A representative from Salad and Go visited the top two options in July. At the time, it chose Dutch Bros.
According to 7 Brew’s website, the chain has two Arizona locations, both in Tucson. Like Salad and Go, the locations have a small footprint without a kitchen hood, and the existing locations would be easy to convert, representatives for 7 Brew said in a court hearing.
Corina Vanek covers development for The Arizona Republic. Reach her at cvanek@arizonarepublic.com. Follow her on X @CorinaVanek.
This article originally appeared on Arizona Republic: Arkansas-based coffee chain outbids Dutch Bros for 73 Salad and Gos
