Photograph courtesy of Luby’s Kitchen
Luby’s stated its board has accepted a plan to liquidate the corporate by means of the sale of its actual property and different belongings, which embody the Luby’s Cafeterias and Fuddruckers manufacturers.
The corporate stated it expects the sell-off to generate $93 million to $128 million. After the proceeds are distributed to shareholders, the corporate will probably be dissolved.
The plan continues to be topic to the approval of shareholders. Earlier than and afterward, Luby’s could be open to a sale of the corporate or its distinct companies, which additionally embody a foodservice administration operation referred to as Culinary Contract Providers.
Luby’s had introduced on June three that it was seeking buyers for all or portions of its operations. That effort apparently didn’t deliver acceptable gives.
“This plan of liquidation is the following logical step within the firm’s beforehand introduced plan to maximise the worth of the corporate by means of the sale of its operations and belongings,” Luby’s board stated in an announcement. “
CEO Chris Pappas added that the plan supplies “the flexibleness to the corporate ought to a compelling provide that delivers superior worth be made.” He left open the chance that the corporate’s restaurant operations will probably be maintained beneath well-capitalized consumers.
Luby’s was based in 1947 in San Antonio, Texas by Bob Luby. Its namesake model, a string of cafeterias, have been its core enterprise till it began diversifying into different manufacturers a few decade in the past. It secured the rights to the Fuddruckers, Koo Koo Roo and Cheeseburger in Paradise chains whereas launching Culinary Contract Providers to handle so-called noncommercial foodservice amenities.
The corporate has been struggling for years to stem a slide in gross sales and site visitors. The problem was accentuated by the pandemic.
It has since bought off many of the eating places in these chains. Right now the corporate operates about 77 namesake cafeterias and about 50 Fuddruckers models, and franchises about 100 extra Fuddruckers.