Memphis restaurateurs Rick Spell and Christy Spell Terry have bid to purchase the Babalu Tapas & Tacos restaurant chain and its parent company, Eat Here Brands, LLC.

The Atlanta-based company filed for Chapter 11 bankruptcy on July 30.

According to bankruptcy court documents filed in Georgia on Sept. 9, Balu Holdings, LLC and Spell are listed as the potential purchasers of the Eat Here Brands, LLC and six Babalu locations.

Spell and his daughter Terry own Spell Restaurant Group, which operates both casual and fine dining at six locations on Highway 30A in the Florida Panhandle and Panama City Beach. They also operate the Brookhaven Pub & Grill in Memphis.

"We love Babalu's food and think they have a good concept," Spell said. "We were surprised when we heard of the company's bankruptcy, and we thought it would be a good addition to our stable of restaurants."

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Their company, Balu Holdings, LLC, is listed as the “stalking horse bidder.” This bankruptcy term refers to the initial bidder with whom the debtor negotiates a purchase agreement.

According to the documents, a final hearing will be held Oct. 18 to approve the proposed sale. Other potential purchasers will have the opportunity to outbid Balu Holdings.

The asset purchase agreement includes the two Memphis locations, as well as ones in Birmingham, Atlanta, Knoxville and Jackson, Mississippi.

"All of the people at Babalu are first class," Spell said. "The fact that there are two in Memphis where I live is an added bonus. The purchase adds to the synergy of expanding our base in Memphis."

Jennifer Chandler is the Food & Dining Reporter at The Commercial Appeal. She can be reached at jennifer.chandler@commercialappeal.com and you can follow her on Twitter and Instagram at @cookwjennifer.