Distressed Property Sale of Austin Restaurant Portfolio Closes at $6.5M—Well Above Opening Bid
The property sale of a five-location Austin restaurant group attracted 12 qualified offers and closed successfully within 90 days.
$6.5M
Combined Closing Price
$6.1M
Above Opening Runoff Auction Bid
12
Qualified Offers Generated
Challenge
After expanding to five locations throughout Austin, Trudy’s Restaurant—an iconic local chain—was forced to file for Chapter 11 bankruptcy due to financial hardship. With a strong local following but limited operational runway, the ownership team turned to Hilco Real Estate Sales (HRE) to execute a fast, strategic sale to preserve value and minimize asset erosion.
Strategy
HRE launched an aggressive, 30-day nationwide marketing campaign targeting restaurant operators, franchise groups, hospitality investors and turnaround specialists. Key actions included:
- Rapid development of customized marketing collateral for the multi-location portfolio
- Promotion across food & beverage investment channels, national buyer lists & local investor networks
- Invitation-only live auction featuring pre-qualified bidders
- Close coordination with bankruptcy counsel to facilitate a compliant, expedited closing
Results
- $6.5M Combined Sale Price for All Locations
- $6.1M Above Opening Runoff Auction Bid
- 12 Qualified Offers Submitted
- Portfolio Sold Within 90 Days of Campaign Launch
Outcome
This sale illustrates HRE’s ability to generate competitive tension and close quickly—even under intense financial pressure. By delivering significant value above expectations in a compressed timeline, HRE reinforced its reputation as a national leader in distressed property sales within the restaurant and hospitality sector.