El Torito Chain Sold to Competitor

Prandium Inc. completed the sale of its flagship El Torito restaurants for about $115 million to Acapulco Acquisition Corp. of Long Beach, an investment group that owns the rival Acapulco restaurant chain.

Prandium, an Irvine-based restaurant holding company, plans to use part of the proceeds to help lighten its hefty debt load.

Prandium is retaining its 148 Chi-Chi’s Mexican restaurants in the Midwest, 43 Koo Koo Roo restaurants and 14 Hamburger Hamlets, as well as four El Torito Express eateries, which cater to shoppers and workers who are looking for a quick lunch.

Financial advisors had recommended that Prandium shed its El Torito chain to help meet debt obligations, including about $100 million in bonds due in 2002.