Darden said to be close to Smokey Bones spinoff deal

Nation's Restaurant News,  Oct 29, 2007  

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ORLANDO, FLA. -- A possible sale of Darden Restaurants Inc.'s 73unit Smokey Bones chain was said to be imminent as of press time following an Oct. 10 deadline for bids that were to expire within two weeks, according to a source close to the process who requested anonymity.

Joe Chabus, a spokesman for Smokey Bones, said that he could not comment on the auction process, but confirmed that there were a number of "quality bids" on the table and that Darden was examining them.

In May, the industry's largest casual-dining operator closed 54 units of the struggling, eight-year-old Smokey Bones chain and said the remaining 73, most of which are located in the eastern United States, would be sold. At the time, Darden, which also operates the Red Lobster, Olive Garden, Bahama Breeze and Seasons 52 chains, said Smokey Bones' performance had lagged behind the other brands'.

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