PUBLIC NOTICE OF 363 SALE: Rōti Restaurants, LLC

NOTICE OF 363 BANKRUPTCY SALE: Rōti Restaurants, LLC

Rōti is a well-established fast-casual dining brand with a strong presence in Chicago, Washington DC, and Minnesota, known for offering healthy Mediterranean-inspired meals. The company has cultivated a loyal customer base and generated annual revenue of $25.7 million in 2023 at 19 restaurants. The store- level earnings in 2023 were $2.9 million and, on an adjusted basis, are projected to be at a similar level in 2024.

However, due to various challenges, including the end of pandemic rent deferrals and other lease obligations, Rōti lacks the capital and scale to persevere, despite nearly all of its locations being cash flow positive. The company is now in the process of selling all its 19 store locations, intellectual property, operational know-how, equipment, and other assets through a 363-bankruptcy process. All of Rōti’s assets will be sold free and clear of all liabilities.

The auction for all or substantially all of Rōti’s assets, including its brand name, will take place on November 11th, 2024, with a minimum bid of $3.5 million required to enter the auction for all locations. Lower minimum bids and deposits will be negotiated and accepted from pre-qualified purchasers interested in acquiring particular markets or individual locations.

Interested parties must pre-qualify by November 7th, 2024, 5 PM CST to participate in the auction. A deposit of $350,000 will be required for those interested in most or all of the locations, while lower deposits (minimum $50,000) will be negotiated for purchasers acquiring specific locations or markets. Proof of financial capability to complete the transaction is also required to qualify.

Significant preparatory work has been completed in advance of this expedited sale. A detailed Confidential Information Memorandum (CIM), financial information for each location and market, lease details, and a comprehensive data room are available immediately upon signing a Non-Disclosure Agreement (NDA).

Project Rōti:
All assets of Rōti, including store locations, intellectual property, equipment, and other operational know-how.
Rōti Bankruptcy Sale Teaser

Key Dates:
Qualifying Bidder Deadline: November 7th, 2024, 5 PM CST
Auction: November 11th, 2024

Interested parties should contact Ravinia Capital LLC and return a signed NDA to receive full access to the diligence materials, including the Confidential Information Memorandum and access to the complete data room.

Bid rules are to be confirmed by the bankruptcy court.

As Rōti’s exclusive investment banker, Ravinia Capital is committed to assisting all interested parties in evaluating this opportunity and will work diligently to help them submit a qualifying bid by the deadline.

Tom Goldblatt | Managing Partner
Ravinia Capital LLC
tgoldblatt@raviniacapitalllc.com
www.raviniacapitalllc.com