U.S. Bankruptcy Judge Alfredo R. Perez of the Southern District of Texas approved the sale at a hearing today, less than two months after the Arizona-founded drive-thru restaurant chain filed for Chapter 11 protection on Aug. 4, 2026.
Reed Smith restructuring partner Omar Alaniz led the team representing the debtor, navigating a competitive sale process that transformed what began as an initial $105 million private sale agreement with Dutch Bros into a court-supervised auction between two of the fastest-growing drive-thru beverage brands in the country. 7 Brew prevailed with a winning bid of $123,452,384.02 for 63 locations across Arizona, Texas, Nevada, and Oklahoma, an approximately $18.5 million increase over the original offer.
Unsecured claims were initially estimated at approximately $50 million. The creative deal structure and competitive auction process reduced that claim estimate by several million through the lease assignment process and simultaneously produced proceeds sufficient to pay those creditors in full, an outcome that defies the common narrative that Chapter 11 means creditors must accept steep haircuts on their claims.
"This case shows what is possible when you approach a restructuring with creativity and a relentless focus on maximizing value for all stakeholders," said Omar Alaniz. "We had a debtor with a valuable real estate portfolio and strong market interest, and we structured a process that locked in a definitive agreement that ensured full payment to creditors with enough room through a fiduciary out that catapulted the sale price by several million. Going from an estimated $50 million in unsecured claims to a $123 million deal that pays creditors in full is the kind of outcome that reminds people Chapter 11 can be a tool for value creation, not just value destruction."
The sale encompasses leases for 36 locations in Arizona, 19 in Texas, 3 in Nevada and 5 Oklahoma. Dutch Bros was named the backup bidder.
The Reed Smith team advising Salad and Go was led by restructuring partner Omar Alaniz and included Amalia Sax-Bolder, Jocelyne Kelley, Daniel Hagedorn, Jason Newman, Robbie McLellarn, Gabrielle Colson, Dylan Jones, Haley Bray, Alex Anderson, Dylan Ross, Alexandra Kane, Michaela Mapes, and Adam Fink.
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