Houston-based Luby’s Inc. (NYSE: LUB), on Sept. 8 announced plans to liquidate, including selling assets such as real estate, and returning the cash to its shareholders.
The decision follows plans announced in June to seek the sale of assets. Stockholders will have to approve the liquidation plan.
The closure of Luby’s means of the last of the cafeterias that once dotted the Texas and Oklahoma landscape serving comfort food to many, often following Sunday church services.
The Luby’s Cafeteria chain was founded back in 1947, but it also has other chains, including Fuddruckers, which specializes in hamburgers.
Both Luby’s and Fuddruckers, like many other restaurants, have been hammered by the pandemic. As of June 3, there were 76 Luby’s Cafeteria locations – including several in and around Fort Worth – and 31 Fuddruckers’s Restaurants, which also has several locations here.
Duff & Phelps Securities, LLC, acted as financial advisor and Gibson, Dunn & Crutcher LLP served as legal advisor to the Special Committee in connection with the Committee’s strategic review. The Special Committee recommended the approval of the plan to the full Board of Directors which then unanimously approved the Special Committee’s recommendation.