GEN Restaurant Group approves $100 million deal with Chubby Group

GEN Restaurant Group has signed a binding letter of intent to sell the operations of 47 US restaurants to Chubby Group in a $100 million transaction. The company’s board unanimously approved the deal, which is expected to close within 30 days, pending necessary approvals and transfers.

Under the agreement, the takeover will be executed in four phases over a 12-month period. GEN Restaurant Group will retain its brand, its consumer packaged goods (CPG) business, and approximately three restaurant locations. The company expects the transaction to substantially reduce its approximately $160 million in lease liabilities and enable it to eliminate its outstanding debt.

In related financial activity, Sanders Morris Harris LLC reported a new position in GEN Restaurant Group, purchasing 609,102 shares valued at approximately $1,060,000 during the third quarter, representing an ownership stake of roughly 1.85%.