McCormick & Schmick's units closed after Landry's completes tender offer
Editor's note: This story has been updated with a statement from Landry's.
Landry’s Inc. closed at least a half dozen McCormick & Schmick’s restaurants Tuesday after completing its tender offer for the company’s shares.
McCormick & Schmick’s units were reported closed in Birmingham, Ala.; Phoenix and Scottsdale, Ariz.; Burbank and Santa Ana Calif.; and Beachwood, Ohio. When the Landry’s acquisition was announced on Nov. 8, Portland, Ore.-based McCormick & Schmick’s had 85 restaurants in the United States and seven in Canada operating under The Boathouse brand.
Kris Guthrie, Landry’s vice president of marketing, said in statement emailed to Nation’s Restaurant News: “We bought a great concept in McCormick & Schmick’s, and only a handful stores were closed for a variety of reasons, including market conditions and lease expirations. Many employees have received opportunities to relocate to other Landry’s concepts in a variety of our market areas.”
Houston-based Landry’s earlier on Tuesday reported completing its tender offer, valued at about $131.6 million, on Dec. 30. Landry’s said more than 13 million shares were tendered at $8.75 each, which gave it about 88 percent of outstanding shares and allowed it to complete the acquisition without shareholder approval.
Some closures were expected after McCormick & Schmick’s reported a net loss of $2.5 million, or 17 cents per share, compared with earnings of $1.04 million, or 7 cents per share, in its earnings for the third quarter ended Sept. 28 compared with the previous year.
The company said customers with McCormick & Schmick’s gift cards could use them at other Landry’s brands or receive a cash refund by calling Landry’s headquarters.
Landry’s, which is privately held, owns and operates hospitality companies and restaurants including the Golden Nugget Hotels & Casinos, Bubba Gump Shrimp Co., Claim Jumper, Landry's Seafood House, Oceanaire, Rainforest Café and Saltgrass Steakhouse.
Tilman J. Fertitta, owner of Landry’s Inc., is also in the process of buying another high-end steakhouse chain. On Dec. 16, he agreed to acquire Morton’s Restaurant Group Inc., the Chicago-based owner of the 77-unit steakhouse chain, for about $116.6 million, or $6.90 a share.