Sale of Coco’s, Carrows Chains Nearly Complete

Flagstar Cos. of Spartanburg, S.C., will complete its previously announced $300-million acquisition of the Coco’s and Carrows chains later this week from Irvine-based Family Restaurants Inc., Flagstar officials said Monday.

The deal, announced March 4, would give Flagstar control over more than 800 restaurants in California.

Flagstar, which already owns the El Pollo Loco and Denny’s chains, is buying a total of 330 Coco’s and Carrows units.

Flagstar intends to keep the Coco’s and Carrows names intact after the deal is completed, Flagstar Chairman James B. Adamson said during a telephone interview.

The acquisition isn’t expected to produce a large number of layoffs, since Flagstar doesn’t intend to close any of its newly acquired restaurants and many corporate staff people will transfer to Flagstar.

But Flagstar does hope to cut costs by blending some back-shop operations--such as purchasing--when feasible.

Family Restaurants, the financially troubled company that also owns the Chi-Chi’s, El Torito and Charley Brown’s chains, plans to use proceeds of the sale to reduce debt.