Houston-based restaurant giant Landry’s has offered to buy RUI Holding Corp., the bankrupt parent of Palomino, Palisade and more than two dozen other restaurants in the Pacific Northwest and elsewhere, for $37.2 million.
That bid will be considered alongside any other offers at an auction on Sept. 18, according to documents filed this week in bankruptcy court in Delaware.
RUI filed for Chapter 11 protection from creditors in early July, shortly after closing six locations including Palomino Rustico at Bellevue’s Lincoln Square, Portland Seafood Company as well as Prime Rib and Chocolate Cake in Oregon, and others from Texas and Indianapolis to California.
That left the company close to 30 properties, ranging from upscale seafood and steak restaurants to its recent Henry’s Tavern brand, which court papers depicted as a costly failure.
Court filings in July indicated it owed more than $37 million to secured creditors, and had not made any payment on those debts since January. It was also behind on rent payments and other obligations, presumably including $7.6 million owed to suppliers and unsecured trade creditors.
If the Landry’s bid prevails, it won’t be the first time the expansion-minded company owned by businessman Tilman Fertitta has picked up a Northwest restaurant company. Landry’s bought the McCormick & Schmick’s chain for $132 million in 2011, after a long campaign to acquire the struggling Portland-based public company.
Landry’s has its own presence in Bellevue: A McCormick & Schmick’s restaurant on the same block as the now-shuttered Palomino Rustico.