Texas chains Luby's and Fuddruckers closing, may be sold following COVID-19 shutdowns
Luby's and Fuddruckers parent company approved plan to liquidate the comfort food eateries
It’s the end of an era for these beloved Texas restaurant chains.
Luby's Cafeteria, a 73-year-old Texas restaurant chain, is going up for sale in a liquidation plan. (Luby's).
Luby's Inc., parent company of restaurant chains Luby's Cafeteria and Fuddruckers, said Tuesday it was selling its assets after shutting down operations at all of its locations March 31 amid the coronavirus pandemic.
Lubby’s Inc. announced an approved plan to liquidate the comfort food eateries and allocate between $92 million and $123 million to its stockholders before dissolving the company. The plan could also lead to a sale of the restaurants, the company said.
As of June, Luby’s Inc. operated 76 locations of Luby’s Cafeteria, a 73-year-old Texas restaurant chain known for its chicken-fried steak and pot pie. It also had 31 Fuddrucker’s burger restaurants as of June 3.
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“We believe that moving forward with a plan of liquidation will maximize value for our stockholders, while also preserving the flexibility to pursue a sale of the company should a compelling offer that delivers superior value be made," Luby’s CEO and President Christopher J. Pappas said in a statement.
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"The plan also continues to provide for the potential to place the restaurant operations with well-capitalized owners moving forward.”