O'Charley's is handing off the logistics and distribution for its Ninety Nine division to a Wisconsin company.

Reinhart FoodService will sublease Ninety Nine's distribution center southwest of Boston before buying its inventories and fixed assets for between $6 million and $8 million. Reinhart will then move that equipment to its own facility in New Bedford, Mass., about 60 miles south.

"The management team at Ninety Nine can now focus exclusively upon managing and improving its great brand, while our Company reduces its investment in non-restaurant assets and reduces its ongoing expenses," newly named O'Charley's President and CEO Jeff Warne said.

The Massachusetts sale mirrors that of its Nashville commissary two years ago – investment firm W.R. Carey paid $9.7 million for 100 Oaks site and equipment – a deal on which O'Charley's booked a $7.6 million writedown. Ninety Nine runs 116 restaurants in the Northeast and Mid-Atlantic. The concept booked fiscal first-quarter sales of about $92 million and an operating margin of about 14 percent.

Shares of O'Charley's (Ticker: CHUX) are trading down almost 6 percent near noon, about double the loss of the main market indices. Year to date, the stock has more than quadrupled.