Daphne’s Greek Cafe to be sold to investment firm

Daphne’s Greek Cafe, which filed for Chapter 11 bankruptcy this year, will be sold to a private investment firm in August, when court proceedings are expected to be completed.
Trefethen Advisors LLC, an investment banking firm that works with middle-market retail companies, is expected to form a new holding company to acquire the San Diego chain’s assets and infuse it with additional capital.
When Daphne’s filed for bankruptcy in January, the owner, Fili Enterprises, said the action was precipitated by a breach in loan rules, which required Daphne’s to maintain a defined profit level.
Under the sale, Trefethen will become part of the new ownership, which will not include ex-owner George Katakalidis.

Founded in 1991, Daphne’s has 65 locations in California , Arizona , Colorado and Washington, including 15 in San Diego County.