(Crain’s) — Giordano’s has been offered $26 million for its operations by an entity linked to the Connie’s Pizza chain, according to a report.

Court documents show that Chicago-based Giordano’s has an agreement with Italian Food Network LLC, the Chicago Tribune reported. Italian Food Network is tied to Connie’s, the Tribune reported, citing unidentified sources.

The offer was revealed in a motion by Giordano’s in Bankruptcy Court asking for approval to auction the business, according to the report. The trustee handling Giordano’s bankruptcy-protection case is looking for separate bids for the business and the chain’s real estate to get the most value, the Tribune said. The bidding entity’s offer is for only the operations, the paper said.

Connie’s did not return a message from the Tribune. The report said court documents show that Connie’s and Giordano’s have a confidentiality agreement.

The offer is a “stalking horse” bid, the paper said, meaning the proposal others would bid against before an auction.

Read more: http://www.chicagobusiness.com/article/20111019/NEWS0702/111019801/giordanos-gets-offer-from-group-linked-to-connies-pizza-report#ixzz1bGGiXldj
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