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Bloomberg
Chinese restaurant chain P.F. Chang’s Bistro, burdened with a heavy debt load and fierce industry competition, may be headed to the auction block, private equity owner Centerbridge Partners LP said.
Centerbridge bought the brand and took it private in 2012. The firm recently completed P.F. Chang’s split from Pei Wei Asian Diner, a separate restaurant chain that had been operated by the parent company.
The 2012 deal valued the chain at $1.1 billion, Bloomberg reported at the time. But many companies in the industry have struggled in recent years amid a grocery price war that has driven down the price of food and fears that the US market is saturated with restaurant locations.
Intense competition has also prompted a slew of discounting that has weighed on the results of restaurant companies. Centerbridge didn’t say what kind of price it would seek for the chain.
“Given the positive performance of P.F. Chang’s Bistro and having received multiple unsolicited indications of interest, this is an exciting time to explore a sale,†Steve Silver, global co-head of private equity, said.
P.F. Chang’s operates 214 locations in the US and franchises 93 restaurants in 24 countries around the world.