Two bidders are expected to go at it Friday in bankruptcy court in an auction to buy Olga's Kitchen out of bankruptcy.
JC Riendle of the Detroit Free Press reports:
An $8.55-million offer for the struggling Detroit-area restaurant chain and its 27 remaining locations was submitted to the bankruptcy court by a late Monday deadline, according to Olga's attorney Robert Bassel of Clinton.
The bid belongs to a newly formed corporation called Cosmo Hospitality. Cosmo now will likely face off on Friday against the initial bidder, Livonia-based Team Schostak Family Restaurants, in a one-on-one auction for Olga's.
Schostak was the stalking horse bidder with an $8.3-million offer. Schostak Family Restaurants already owns 50% of 11 Olga's locations that are not in bankruptcy through a decade-old development agreement with the Olga's Kitchen corporation. Schostak is seeking to buy full control of those 11 Olgas — plus ownership of the 15 restaurants Olga's runs on its own.
