Luby’s Pursuing the Sale of Its Restaurants and Assets
A Texas staple may soon be closing its doors for good.
The coronavirus pandemic has been particularly hard on the restaurant industry, with Houston-based Luby’s the latest to fall victim.
The company announced that it would pursue the sale of its restaurants and assets and distribute net proceeds to stockholders in a statement last week. Luby’s will continue to operate its restaurants during the sale process.
In addition to Luby’s Cafeteria, the company also operates Fuddruckers and Culinary Contract Services.
The press release states:
Luby’s will explore a variety of potential transactions, including selling the Company’s operating divisions: Luby’s Cafeteria, Fuddruckers, and Culinary Contract Services, as well as its real estate, or selling the Company in its entirety. Net proceeds obtained from any such transactions, after satisfying the Company’s debt and other obligations, will ultimately be distributed to Luby’s stockholders.
I realize this is wishful thinking (especially during a pandemic), but hopefully someone will swoop in and save the day and keep Luby’s up and running. We’ll keep a close eye on the story and provide updates when more information comes our way.