Louise’s Trattoria Chain Acquired for $7 Million

Louise’s Trattoria, a popular Italian restaurant chain that filed for Chapter 11 bankruptcy protection in September after a failed bid to expand on the East Coast, has been acquired for $7 million, the company said Tuesday.

The Torrance-based company was purchased by Jon Chait, a top executive of Milwaukee-based global employee-placement firm Manpower Inc. and the brother of William Chait, Louise’s founder and former president. Jon Chait bid $7 million in cash and promissory notes at a U.S. Bankruptcy Court auction.

The auction was ordered after two potential buyers indicated interest in the chain following the company’s filing of a request to sell to Jon Chait, according to Ron Bender, an attorney for the restaurant.

“This is an extraordinary result for creditors and for the future economic health and viability of the restaurant chain,� Bender said.

Cimm’s Inc., a Glendale-based restaurant company that operates more than 100 Burger King and Tony Roma restaurants, and Chicago-based Weatherly Hospitality Inc., each submitted bids to buy Louise’s, which has 15 restaurants in Southern California and one in Milwaukee.

Weatherly withdrew from the bidding just before the auction, which was held late last week. Cimm’s and Chait started the bidding at $4 million.

Chait eventually bid $7 million and won after Cimm’s could go no higher than $6.7 million.

Chait, who will become chairman of Louise’s, must now propose a plan for reorganization of the company’s debt and for how proceeds from the sale will be distributed to creditors. The plan must be approved by the court.