Quaker sale hearing to take place today

Staff report

SHARON, Pa.

A hearing to sell Sharon-based Quaker Steak & Lube will take place today in the U.S. Bankruptcy Court of the Northern District of Ohio Eastern Division.

TravelCenters of America LLC agreed to acquire Quaker Steak & Lube’s restaurant and related assets for about $25 million after Quaker filed for bankruptcy in November 2015.

Quaker Steak’s bankruptcy filing includes the asset purchase and $2 million debtor-in-possession financing agreements with TA.

Pursuant to the purchase agreement, TA has placed a substantial deposit toward the purchase price and has agreed to offer employment after the closing to substantially all Quaker Steak & Lube’s employees.

Quaker Steak’s bankruptcy filing listed 200 to 999 creditors with $1,000,001 to $10 million in assets and $1,000,001 to $10 million in liabilities.

Among the creditors is Cortland Banks. The payoff balance to Cortland will be $3.1 million.

“Cortland respectfully requests that the order approving the sale of the debtors’ assets to TCA require the debtors to pay Cortland its loan balances on the date of closing,” a filing by Cortland through its counsel Thursday reads.

Westlake-based TA believes the purchase of Quaker Steak will increase the profitability of its current operations.

TA’s nationwide business includes travel centers in 43 U.S. states and in Canada. TA convenience stores operate principally under the “Minit Mart” brand name in 11 states.

Founded in 1974, Quaker Steak & Lube, known for its wings, decor and original sauces, has more than 50 locations, a majority of which are franchised, in 16 states, with a concentration in Pennsylvania and Ohio.