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Koo Koo Roo Inc. agreed last week to buy the Hamburger Hamlet restaurant chain out of bankruptcy for $11.45 million.

Sherman Oaks-based Hamburger Hamlet, which has been operating under Chapter 11 protection since December 1995, is expected to continue as a division of Koo Koo Roo.

"They have assured us that all operating and financial management would remain in place," said Hamlet Chief Financial Officer Jack Lavine.

Two of the chain's 16 restaurants will likely be closed once the deal is completed, Lavine said. Ten of the remaining stores are located in Southern California, most of them in L.A. County, while the others are located in the Washington, D.C. area.

They will still operate under the Hamburger Hamlet name, although Koo Koo Roo officials said they may eventually co-locate Koo Koo Roo restaurants in some of them. Selected items from the chicken restaurant chain are also likely to end up on the Hamburger Hamlet menu.

Dan Turner

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