7 Brew’s $123.5M Sale Pays Salad and Go’s Unsecured Creditors in Full

Salad and Go’s unsecured creditors are on track to be paid in full after Judge Alfredo R. Perez approved 7 Brew’s $123.5 million purchase of 63 store leases on September 29, 2026, less than two months after the fast-casual chain filed Chapter 11 in Houston.

Why it matters: A full unsecured payout is the exception in Chapter 11, not proof that receivables are safe without insurance.

What triggered Salad and Go’s Chapter 11

Salad and Go’s case traces back to an expansion bet that never paid off.

• Salad and Go closed more than 70 stores on August 4, 2026, the same day it filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.
• The Tempe, Arizona-based chain built its Garland, Texas hub with more than $47 million in capital and $25.4 million in New Market Tax Credit loans, but the facility carried $15 million to $20 million in annual overhead it never earned back.
• Salad and Go listed both assets and liabilities in the $500 million to $1 billion range in its petition, despite what the company called an unusually clean capital structure with no secured debt at its primary operating entity.

How the $123M sale to 7 Brew unfolded

Getting unsecured creditors to a full recovery took a real auction, not a quiet liquidation.

• Dutch Bros signed the original stalking-horse agreement for $105 million before the auction opened.
• 7 Brew won with a court-approved bid of $123,452,384.02, roughly $18.5 million above Dutch Bros’ offer.
• The approved sale carries 63 store leases concentrated in Arizona, Texas, Nevada and Oklahoma, converting former Salad and Go locations into 7 Brew’s coffee-stand format.
• Reed Smith restructuring partner Omar Alaniz said the case “shows what is possible when you approach a restructuring with creativity and a relentless focus on maximizing value.”

What the full payout means for suppliers and landlords

This outcome is rare. Most trade creditors don’t fare nearly this well, as BFG Supply’s unsecured creditors learned earlier this year.

• Reed Smith says the sale is on track to recover roughly $50 million in unsecured claims in full, calling it “an exceptionally rare outcome in a Chapter 11 case,” the kind of result trade credit insurance exists to guarantee when a sale doesn’t go this well.
• Some landlords declined to transfer their leases to 7 Brew, a reminder that court approval of a sale does not guarantee every counterparty accepts the assignment.
• Dutch Bros remains the named backup bidder, so vendors and landlords tied to any of the 63 leases should confirm final assignment before treating the deal as settled.

What to do now

Suppliers still owed money by Salad and Go, or watching a similar mid-market restructuring, should review general recovery options for creditors and take these steps now.

1. Check your trade credit policy’s notification and filing-deadline requirements now, subject to credit limits, notification requirements, and policy terms in place at the time of the filing.
2. Contact Securitas Global Risk Solutions to see how a case like this would have played out against your own receivables under a trade credit policy.

Disclaimer:
This blog post is meant to be informative and provide helpful tips and insights into credit insurance policies. It is not meant to supersede any policy requirements. Please consult your credit insurance policy for all requirements including claim filing deadlines and required documentation.

Since 2004, Securitas Global Risk Solutions, LLC has helped clients develop trade credit and political risk transfer solutions. As an independent brokerage, Securitas is focused on developing comprehensive solutions that meet client needs, ensuring a complete understanding of policy wording and delivering excellent responsive service. If you want to understand how trade credit insurance can protect your business, contact Securitas Global Risk Solutions to speak with a specialist.