Planet Hollywood expected to buy Buca restaurantsby Martin Moylan, Minnesota Public Radio
St. Paul, Minn. — Planet Hollywood International expects to buy the struggling Buca restaurant chain, which is based in Minneapolis.
A subsidiary of privately held Planet Hollywood will buy Buca and its 88 restaurants for $0.45 a share. The total price works out to about $10 million.
Buca representatives said its board unanimously approved the offer.
Buca's family-style restaurants produced dramatic sales growth a few years ago, but the company has struggled financially since 2003.
Until early last year, Buca was subject to an investigation by federal regulators. That probe concluded with no penalties because the company had cleaned up its act, resolving some financial shenanigans by a former CEO. He had bought an Italian villa with company funds.
Buca eventually got the title to the villa and fired the CEO.