Posted on Wed, Mar. 15, 2006

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Roadhouse Grill deal goes down in flames

Steakhouse Partners (STKP) plan to buy Pompano Beach-based Roadhouse Grill (GRLL) for $25.5 million has gone down in flames.

Roadhouse terminated the proposed deal after San Diego-based Steakhouse couldn't show it had sufficient financing to complete the transaction, Roadhouse said in a statement.

The news sent Roadhouse's shares tumbling. In early afternoon trading, Roadhouse shares were down 50 percent to 25 cents.

Roadhouse's board of directors will continue to explore options. It's being advised by JH Chapman. Roadhouse owns and operates 60 restaurants and has 12 franchised or licensed restaurants.