PRESS RELEASE—Krystal Announces New Ownership
May 20, 2020—The Original Quick-Service Restaurant Chain Reveals New Equity Partners
ATLANTA, Ga. – (May 20, 2020) – Krystal Restaurants LLC is pleased to announce that it has been acquired by funds managed by affiliates of Fortress Investment Group LLC (”Fortress”) and its operating partner, Golden Child Holdings, effective Monday, May 18.
“The new partnership is excited to continue growing the brand, maintaining an overriding focus on enhancing customer experience,” said Angela Johnson, VP of Marketing for Krystal Restaurants, LLC. “Even during this unusual time, our iconic brand continues to perform well, and we see exceptional opportunities for growth looking ahead.”
Krystal filed for bankruptcy in January 2020, and as part of the reorganization process, the company was marketed for sale, with Fortress emerging as the successful acquirer of the business. Both Fortress and Golden Child have strong ties to Atlanta, the South and the Krystal brand.
Founded in 1998, Fortress Investment Group is a global investment manager with offices in Atlanta and approximately $43.5 billion of assets under management (as of Dec. 31, 2019). Golden Child is an active investor and manager in the restaurant sector and has extensive turnaround experience.
Effective immediately, Thomas Stager, will take over operations as President. Mr. Stager is a tenured restaurant leader and operator who has led successful turnaround assignments in both franchisee and franchisor sectors with large brands including Pizza Hut and Arby’s. He replaces former President and COO Tim Ward, who along with former CFO Bruce Vermilyea, are no longer with the Company. More company plans will be announced in the near future.
About Krystal Restaurants LLC
Founded in Chattanooga, Tennessee, in 1932, Krystal Restaurants LLC is the original quick-service restaurant chain in the South and was selected to USA Today’s 2019 Top-10 Best Regional Fast Food List. Krystal hamburgers are still served fresh and hot off the grill on the iconic square bun at 300 restaurants in 10 states. Krystal’s Atlanta-based Restaurant Support Center serves a team of over 6,000 employees. For more information, visit krystal.com.
Melissa Libby & Associates