Drive-thru coffee competitor 7 Brew submitted a superior offer for the assets of the defunct Salad and Go. It informed a Texas bankruptcy court of this, challenging a pending deal with Dutch Bros Inc.
Dutch Bros previously established a $105 million agreement to acquire leases and equipment. This deal covers up to 65 former Salad and Go locations across Arizona, Nevada, Texas, and Oklahoma. The drive-thru-only format of these locations suits conversion. This format aligns with Dutch Bros' aggressive expansion plans.
The court must now consider 7 Brew's claim as it oversees Salad and Go's Chapter 11 proceedings. According to a court filing, 7 Brew and Dutch Bros were the top two bidders. Both initially sought a direct sale without an auction process. The outcome will impact Dutch Bros' plan to quickly expand its footprint in key states.