Olga’s Kitchen, a Detroit-area brand that fell on hard times as dining habits changed and shopping malls declined, could be purchased out of bankruptcy by Schostak Family Restaurants, which already owns part of 11 Olga's locations that are not part of the bankruptcy, the Detroit Free Press reported today. Livonia, Mich.-based Team Schostak Family Restaurants bid $8.3 million for all 27 remaining Olga's restaurants. Those locations are currently up for grabs in an auction that runs through Monday. Schostak Family Restaurants already owns 50 percent of the 11 Olga's locations not in bankruptcy through a decade-old development agreement with the regional pita wrap chain. If Schostak wins the auction, it would gain full control of those 11 locations — plus ownership of the 15 restaurants that Olga's still runs on its own.
