Coffee chain 7 Brew has emerged as the lead bidder for 73 former Salad & Go drive-thru locations after offering more than $143 million for the sites.

The bid came during a court-supervised bankruptcy auction, where 7 Brew went up against rival beverage chain Dutch Bros for Salad & Go’s former store portfolio.

Dutch Bros had previously agreed to pay $105 million for up to 65 locations across Arizona, Nevada, Texas, and Oklahoma, but declined to increase its offer.

According to a court filing, 7 Brew’s bid is split into two groups: About $125 million for 49 locations and more than $18 million for another 24 sites. That compares with Dutch Bros’ original offer of less than $2 million per location.

Salad & Go –  founded in Arizona in 2013 – grew to 146 restaurants across Arizona, Nevada, Texas, and Oklahoma. 

However, its expansion into Texas and Oklahoma proved difficult, with site selection issues, limited brand awareness, and its commissary-based production model putting pressure on the business.

The chain eventually exited those markets and closed its Garland, Texas, production facility, but it was too late to arrest the decline of the business.

Salad & Go lawyer Omar Alaniz said during a hearing that 7 Brew’s bid was “above robust” and would provide funds to pay the defunct chain’s creditors. 

“This is a great result,” Eric Chafetz, a partner with Lowenstein Sander, who represented the official committee of unsecured creditors, said of 7 Brew’s bid during the hearing. “The committee is extremely supportive, and we do like where things are headed.” 

Dutch Bros, meanwhile, said it would not raise its original offer.

”We’ve always been disciplined in how we allocate capital,”  said Christine Barone, CEO and president of Dutch Bros. 

“While we have chosen not to increase our original offer, we remain engaged in the process and will continue to evaluate opportunities where the total investment provides the appropriate return.”

• Further reading: Flynn Group to open 160 7 Brew locations across the US.