FAYETTEVILLE, Ark. — Amid ongoing legal battles with 7 Brew, the founder of Jimmy John's Sandwiches has sold a share of his stake in the coffee-to-go company to Blackstone, a private equity business based in New York.
Blackstone announced in a press release on Feb. 14 that they made a "growth equity investment" in the rapidly expanding drive-thru coffee shop.
"We are on a strong growth trajectory thanks to our outstanding team, the Brew Crew, and are so excited to have found in Blackstone a true partner who understands our culture and whose global reach and incredible resources will enable us to reach this next stage of growth," John Davidson, CEO of 7 Brew, said in the press release.
The press release said Jimmy John Liautaud, who is in a legal battle against Drink House Holdings LLC, the parent company of 7 Brew Coffee, and Bar 7 Bar LLC, the manager of 7 Brew, was a "selling shareholder in this transaction." However, the terms of the transaction were not disclosed to the public.
"I am truly honored to have had my mentor, the legendary Jamie Coulter, ask me to help launch franchising for this exceptional brand. I am confident that the Brew Crew, management, and Blackstone will continue to drive exponential growth," Liautaud said.
In a case that is still open, Liautaud and 7 Brew had been filing back-to-back civil suits against one another since January 2023.
The legal battle began on Jan. 13, 2023, after Stillwater Brew LLC, a Delaware company of which Liautaud is a principal owner, filed a lawsuit against Drink House Holdings and Bar 7 Bar. Davidson is also listed as a defendant in the lawsuit.
The two parties were preparing to reach mediation over the ownership dispute this past May. However, a recent court filing says the two will continue the legal battle into March 2024.
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