7 Brew wins bidding war for 73 former Salad and Go locations
PHOENIX - A new coffee chain could soon be moving into dozens of former Salad and Go locations across Arizona.
What we know:
7 Brew just won the bidding war for 73 of the shuttered locations, beating out another popular coffee chain, Dutch Bros. According to the Texas Southern Bankruptcy Court, the auction was conducted on Aug. 31 and the hearing to sign the leases and contracts is scheduled for Sept. 21.
The Arkansas-based company is paying roughly $143 million for the leases, including 41 Arizona locations.
The backstory:
In early August, Salad and Go announced the sudden closure of all locations, after they filed for Chapter 11 bankruptcy in federal court.
In a statement released Aug. 4, the company said:
"Salad and Go today announced that it has filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division. All Salad and Go locations will close permanently, with final guest service on Aug. 5, 2026. Chapter 11 provides a court-supervised framework for the company to realize the value of its assets and to meet its obligations in an orderly manner."
Salad and Go was founded in Gilbert in 2013, and had 70 drive-thru locations in Arizona and Nevada. Texas and Oklahoma locations had previously shut their doors.
The company blamed the closure on "sustained pressure on consumer demand" and "rising costs," among other reasons.
Dig deeper:
Dutch Bros had agreed to purchase Salad and Go's assets for $105 million, just a day after the closure announcement, court documents had said. However, they chose not to increase their bid.
What's next:
A bankruptcy court still needs to approve the sale before anything is final.
The Source: Information in this report was gathered from the Texas Southern Bankruptcy Court and previous FOX 10 reports.