Denny’s Shuts Doors After Confirming Sale to Private Investors
Denny’s, the iconic American diner chain, has quietly closed one of its restaurants just weeks after announcing a major sale. The closure, at the Coddingtown Mall location in Santa Rosa, California, has left the city with only one remaining Denny’s, leaving loyal customers surprised and a bit nostalgic. A simple sign now points visitors to a nearby outlet, but no further details were provided to explain the sudden shutdown.
Earlier this month, it was revealed that Denny’s would be acquired by a group of private investors, in a deal designed to take the company off the public market. The board unanimously approved the acquisition, which values the chain at $620 million, including debt. The investors involved include TriArtisan Capital Advisors, Treville Capital, and Yadav Enterprises, one of Denny’s largest franchisees. Under the agreement, shareholders will receive $6.25 per share, totaling $322 million.
Also Read:- Winter Weather Warnings Amid Sudden System Disruptions
- Fernando Alonso Reflects on Experience Ahead of Qatar GP Sprint
Founded in 1953 in Lakewood, California, Denny’s began as Danny’s Donuts before changing its name to Denny’s Coffee Shops in 1959 to avoid confusion with another chain. The company went public in 1969 and grew into a beloved symbol of casual American dining. Like many restaurant chains, Denny’s struggled during the COVID-19 pandemic as sales dropped and customer habits shifted, with delivery becoming increasingly important. Newer chains, offering healthier breakfast options, also presented growing competition.
Last fall, Denny’s announced plans to close 150 of its lowest-performing locations, a number that has now been confirmed as part of its ongoing restructuring. At the end of the second quarter, the chain operated 1,558 restaurants worldwide, including 1,422 Denny’s locations and 74 Keke’s restaurants, a brand it acquired in 2022.
CEO Kelli Valade explained that the company reached out to over 40 potential buyers and received multiple offers before agreeing to the deal. The board believed that the acquisition was in the best interest of shareholders and offered the most promising path for the company’s future growth. TriArtisan’s co-founder, Rhohit Manocha, described Denny’s as “an iconic piece of the American dream” and expressed excitement about supporting its long-term strategic plans alongside the current team and franchisees.
If approved by shareholders, the sale is expected to close in the first quarter of 2026. Denny’s joins a growing list of U.S. restaurants facing closures and financial challenges this year, reflecting the changing dynamics of the dining industry. Despite these hurdles, the brand remains an enduring part of American culture, remembered fondly by generations of breakfast lovers.
Read More:
0 Comments