* Paragon Restaurant Group, the closely held...

* Paragon Restaurant Group, the closely held San Diego-based restaurant operator, said Monday it has retained the Donaldson Lufkin & Jenrette investment banking firm to “explore strategic alternatives” for Paragon. Options to be considered include recapitalization of Paragon or the possible sale of one or more of Paragon’s operating companies.

At the same time, Paragon said it has reached a preliminary agreement to sell its Carlos Murphy’s restaurant chain. In addition to Carlos Murphy’s, Paragon operates the Rusty Pelican seafood chain and Paragon Steakhouse Restaurants, which operate under the names of Hungry Hunter and Mountain Jack’s.