Jimmy Buffett sells "Cheeseburger in Paradise" restaurants

Thu Nov 29, 2012 2:51pm EST

(Reuters) - Jimmy Buffett is parting with Cheeseburger in Paradise, a chain of theme restaurants that is named after one of his songs, for $11 million.

Luby's Inc. announced on Wednesday it was buying Paradise Restaurants Group LLC with cash and credit, acquiring its 23 Cheeseburger in Paradise locations in 14 states that in previous years had generated revenue of more than $50 million.

Cheeseburger in Paradise was founded 10 years ago in collaboration with the entertainer, based on his 1978 ode to "heaven on earth with an onion slice."

"Luby's anticipates developing opportunities to expand the brand," the company said in a statement.

The restaurants created an island, beach-party atmosphere that would be familiar to fans of Buffett's music and a slight departure from the more family-oriented Luby's Cafeterias and Fudduckers restaurants operated by Luby's Inc.

(Reporting by Daniel Trotta; Editing by Eric Meijer)