Ignite sells Italian-themed casual dining concept to a venture capital firm for $8 million in cash.

Ignite Restaurant Group, Inc. (NASDAQ:IRG) has reached an agreement to sell its Romano's Macaroni Grill subsidiary to Redrock Partners, LLC. Under terms of the agreement, Ignite Restaurant Group will receive approximately $8 million in cash, prior to any adjustments for transaction related costs.

"We continue to believe in the underlying strengths of the Macaroni Grill business. Unfortunately, the brand was unable to deliver, in a timely manner, on the milestones we established. As a result, we decided that it was in the best interest of Ignite and our shareholders to sell the brand," said Ray Blanchette, chief executive officer for Ignite Restaurant Group, Inc.

The transaction is expected to close within 30 days, subject to customary closing conditions.