Chalet Gourmet Takes Control of Irvine Ranch Farmers Market

An investment group headed by the owner of Chalet Gourmet took control Tuesday of Irvine Ranch Farmers Market, now in bankruptcy court proceedings.

The change became official Tuesday after others who had expressed interest in purchasing or investing in Irvine Ranch did not appear at a hearing in U.S. Bankruptcy Court.

The arrangement with Chalet Gourmet and Irvine Ranch ends an agreement in principle reached early this month between the beleaguered upscale grocery chain and American Breco, the company that owns Boys Markets. “It’s a done deal now,” said Marc Winthrop of Lobel, Winthrop & Broker law firm, which represents Irvine Ranch.

The investment group must now come up with a plan for reorganization, which, in turn, must be submitted to creditors and approved by the federal bankruptcy court.

Chalet Gourmet has agreed to immediately invest more than $2.6 million in the Irvine Ranch chain. In return, the investors would get a controlling majority interest in Irvine Ranch, along with control of the chain’s operations and management.

Chalet Gourmet, an upscale 8,000-square-foot grocery store in Los Angeles, is owned by Daniel Bobroff. The investment group is made up of Bobroff and HLHZ Capital of Los Angeles, a financial-restructuring group that is an arm of Houlihan, Lokey, Howard & Zukin, a national financial-advisory group.