The planned bankruptcy auction for RUI Holding has been canceled after no bidder surfaced to compete with an offer from industry powerhouse Landry’s for the operator of Palomino, Palisade and more than two dozen other restaurants in the Pacific Northwest and elsewhere.
Houston-based Landry’s in late August proposed to pay $37.2 million for RUI. In a notice posted on the Delaware bankruptcy-court website Tuesday, RUI said the auction was canceled and a hearing on the sale to Landry’s is scheduled for Sept. 23.
RUI filed for Chapter 11 protection from creditors in early July, shortly after closing six locations including Palomino Rustico at Bellevue’s Lincoln Square and restaurants in Oregon, Texas, Indiana and California.
The company still has nearly 30 properties, ranging from upscale seafood and steak restaurants to its recent Henry’s Tavern brand, which court papers depicted as a costly failure.
Originally known as Restaurants Unlimited, the company was started by Rich Komen in 1969 with the Seattle steak and lobster house, The Red Baron. In 2007 the company was sold to Sun Capital, a private equity firm that retains an ownership role with RUI.
Landry’s says it owns and operates more than 600 properties under more than 60 brands including Landry’s Seafood, Chart House, Saltgrass Steak House, Bubba Gump Shrimp Co., Morton’s The Steakhouse, Mastro’s Restaurants and Rainforest Cafe. It acquired the Portland-based McCormick & Schmick’s chain in 2011.