The assets for Old Country Buffet’s former owner have been sold to the parent company of Famous Dave’s and the company is winding down its bankruptcy. But that doesn’t mean an end to the controversy over the operation of the company, which had been known as Buffets LLC and then Fresh Acquisition, RestaurantBusinessOnline.com reported. Last week, a federal bankruptcy judge signed off on Fresh Acquisitions’ bankruptcy plan, which gives a trustee the go-ahead to sue its former owners for nearly $20 million in misused funds. Creditors for some $75 million in unsecured debt have accused the former owners of a variety of improper transfers and misused funds totaling $19.75 million. They include $4 million in misused Paycheck Protection Plan funds, along with $5.25 million in “excessive management fees” and $3.85 million in unexplained transfers to affiliates and other insiders. Creditors also say there are $8.6 million worth of additional transfers of funds or real estate, unexplained credit card debt as well as a $2 million insurance policy to protect the personal assets of directors and officers. According to court filings, the people who owned or controlled Fresh Acquisitions have a combined net worth of $62.7 million, including $31.6 million in cash.
