Dive Brief:
- Sun Holdings, through affiliate company Louie Restaurants, has acquired Bar Louie out of bankruptcy, the company said in an emailed press release. The purchase price was not disclosed.
- Bar Louie filed for Chapter 11 bankruptcy for the second time in March after it struggled to recover from the COVID-19 pandemic. It currently has 39 units, according to the press release.
- The buyout is part of Sun Holdings’ strategy to expand its nationwide presence in casual dining and to diversify its portfolio. Sun Holdings started out primarily as a franchisee but has since built up a significant portfolio through unit development, acquisitions and brand ownership, the press release said.
Dive Insight:
Sun Holdings began its acquisition streak in 2019 through its purchase of distressed Taco Bueno, which also underwent bankruptcy. It then bought Freebirds World Burrito in 2024, and acquired Uncle Julio’s during a foreclosure auction earlier this year, creating a portfolio of Mexican food brands. The holding company now operates over 1,800 locations nationwide, including Applebee’s, Arby’s, Burger King, Golden Corral, IHOP, McAlister’s, Papa John’s and Popeyes locations. Bar Louie is Sun Holdings’ first gastropub brand.
“This acquisition marks an exciting step forward in our growth strategy,” said Guillermo Perales, president and CEO of Sun Holdings. “Bar Louie is renowned for its signature martinis and innovative, craveable food. Its unique brand identity makes it an ideal addition to our casual dining portfolio and highlights our strategy of pairing operational expertise with growth opportunities.”
But the Bar Louie brand is likely to pose major challenges for Sun Holdings. The chain tried to jump start franchising in 2023, when it had 67 units, by offering discounted franchising fees for first-time operators. But by the end of that year, it projected only three franchised restaurant openings in 2024, according to its franchise disclosure document. Coming out of bankruptcy, the chain’s store count dropped to 39 units — slightly more than half of what it had in 2021.
