Sun Holdings CEO Guillermo Perales says the gastropub chain “can benefit from renewed energy, consistent execution and strategic investment in its best-performing markets.” Of the 39 locations, which are spread across 17 states with some larger handfuls in Texas and Illinois, 22 are company-owned and 17 are franchised.
The second-largest restaurant franchisee in the country is expanding the brand owner side of its portfolio.
Dallas-based Sun Holdings acquired Bar Louie out of bankruptcy in a move that puts the 39-unit gastropub chain alongside Taco Bueno, Freebirds World Burrito and Uncle Julio’s as the fourth concept Sun Holdings owns outright. Terms of the deal were not disclosed.
Sun Holdings, ranked No. 2 on the Franchise Times Restaurant 200, is best known as a major franchise operator in brands such as Arby’s, Papa Johns, Burger King and Applebee’s. Its restaurants did $1.9 billion in sales in 2024, behind only Flynn Group at $4.8 billion.
Sun Holdings CEO Guillermo Perales says Bar Louie "retains strong customer awareness and a differentiated positioning in the bar-centric casual dining space."
“Sun Holdings has a track record of turning around and growing brands across multiple industries. With Bar Louie, the opportunity lies in improving operations, refreshing the guest experience, and bringing discipline in marketing, menu development and digital channels,” Sun Holdings CEO Guillermo Perales said in emailed comments. “We believe the brand can benefit from renewed energy, consistent execution and strategic investment in its best-performing markets."
Bar Louie filed for bankruptcy in March after it was unable to find a buyer following a marketing process with Kroll Securities. It was the second Chapter 11 filing for the company in less than five years, and it’s closed nearly 100 locations since 2020, when it had 134.
Of the 39 locations, which are spread across 17 states with some larger handfuls in Texas and Illinois, 22 are company-owned and 17 are franchised.
In 2023, Bar Louie said a brand refresh would launch its comeback after it emerged from bankruptcy in 2020. Secured lender Antares Capital LP bought the brand in 2020 and later sold it to Trew Capital.
The bankruptcy filing in March showed the company faced sizable debt, with liabilities of $50 million to $100 million contrasted with assets of $1 million to $10 million. In court documents, Chief Administrative Officer Leslie Crook said “significant macroeconomic factors” negatively impacted the company’s margins and cash flow, while inflationary pressure caused consumers to cut back on dining out.
“At the same time, menu prices have risen to keep pace with increased food, utility and labor costs,” Crook said. “As a result, many of the debtors’ restaurants have underperformed, causing a drag on the debtors’ financial performance and management attention.”
The company cited a nearly 39 percent decline in earnings before interest, taxes, depreciation and amortization, or EBITDA, in November 2024 compared to the prior year.
Brian Wright took over as CEO in 2022. Bar Louie spent a year after Wright’s appointment developing its food menu, because customers came in for cocktails and not food, Wright told Franchise Times in 2023. Still leaning into its staple martinis, average unit sales for franchised Bar Louie restaurants not located in a hotel were about $3.2 million in 2022. The following year, average sales dipped to about $3.1 million.
Wright left the brand in July. Perales said the Sun Holdings leadership team is evaluating Bar Louie’s long-term management needs as part of its assessment of the business.
“Our approach is always to stabilize operations first, and then determine the right structure for leadership going forward,” he said. “We are committed to ensuring Bar Louie has the resources and leadership it needs to succeed.”
Bar Louie got its start in Chicago in 1991, and Perales said it has a “unique brand identity” with its signature martinis and craveable food. He called it an “ideal addition” to his company’s casual dining portfolio and said the acquisition “highlights our strategy of pairing operational expertise with growth opportunities to drive value for both customers and stakeholders.”
“Despite the challenges the brand has faced, it retains strong customer awareness and a differentiated positioning in the bar-centric casual dining space,” Perales said. “We saw an opportunity to acquire a brand with history and recognition at an attractive entry point, where we can apply our operating expertise and resources to restore growth.”
Perales, who founded Sun Holdings in 1997 and built a massive multi-unit franchise portfolio, began acquiring brands in 2019. His first buy was quick-service concept Taco Bueno, which had just restructured following its own bankruptcy. Sun Holdings picked up fast-casual concept Freebirds World Burrito in August of last year. To finish 2024, it acquired casual dining brand Uncle Julio’s. That process began in mid-2024 with Sun Holdings acquiring the company's debt before netting its assets in December.
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“Our strategy includes acquiring strong concepts that can be repositioned and scaled,” Perales said. “Bar Louie fits squarely within that strategy as a well-known legacy brand with potential for revitalization and long-term expansion.”
By Laura Michaels in https://www.franchisetimes.com/franchise_mergers_and_acquisitions/why-sun-holdings-sees-promise-in-buying-bankrupt-bar-louie/article_4b3e1ef3-da92-4bea-a3b5-cea395f8dbf8.html on Oct 8, 2025