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Krystal was sold to Fortress for $48 million, according to QSR magazine, in a transaction that involved a $27 million credit bid and the assumption of up to $21.5 million in liabilities.
The acquisition was effective May 18, the chain said. Both Fortress and its partner, Golden Child Holdings, have strong ties to the South and the Krystal brand. Fortress Investment Group has approximately $43.5 billion of assets under management with offices in Atlanta.
“The new partnership is excited to continue growing the brand, maintaining an overriding focus on enhancing customer experience,” Krystal VP of Marketing Angela Johnson said. “Even during this unusual time, our iconic brand continues to perform well and we see exceptional opportunities for growth looking ahead.”
Krystal also announced Thomas Stager will be taking over as company president, effective immediately. Stager has worked with large restaurant brands like Pizza Hut and Arby’s.
“We look forward to growing and evolving the brand," Stager said. "Krystal is steeped in history and we plan to continue the tradition of making memorable moments through our crave-able menu and guest experience.”
Krystal Restaurants LLC is the original Southern fast-food chain, founded in Chattanooga, Tennessee, in 1932. Krystal has more than 300 restaurants in 10 states and employs more than 6,000 workers.