Ignite Restaurant Group, owner of the Joe’s Crab Shack and Brick House Tavern + Tap brands, announced that it has entered into an agreement with an affiliate of Kelly Companies, a San Diego based private equity firm, pursuant to which it would sell both of its brands for a cash bid offer.

In order to facilitate the sale, Ignite and certain of its subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas.

Pursuant to Section 363 of the Bankruptcy Code, Ignite also will be filing a motion for the implementation of bidding procedures to allow other companies the opportunity to submit bids through a Court-supervised process to purchase the assets being sold. Ignite anticipates the sale transaction, which is subject to customary closing conditions, will be completed within 60 to 90 days. Piper Jaffray & Co is being retained to conduct a sale process under the bid procedures, pursuant to which Piper Jaffray will seek higher or better offers from prospective bidders interested in purchasing the business as a whole or any of its component parts.

Both Joe’s Crab Shack and Brick House Tavern + Tap restaurants will remain open and operating as usual and Ignite customers can expect to continue to enjoy the same great food and service that they have come to expect from our brands.

“Today’s sale agreement represents the culmination of a long and thorough process, and is an important step in positioning Joe’s and Brick House for future growth and success,” said CEO Jonathan Tibus.

Michael Kelly, CEO of KRG Acquisitions Co, LLC (an affiliate of Kelly Companies), said that he is “excited about acquiring a well-known national brand such as Joe’s Crab Shack and Brick House Tavern + Tap. We look forward to delivering great food and impeccable customer service to the many valued customers of Joe’s and Brick House. KRG believes Joe’s and Brick House will benefit from KRG’s experience in the casual dining industry and its existing operational capabilities.”