Updated September 9, 2020:
On Tuesday, September 8th, Luby's officially announced it plans on liquidating assets if a sale is not reached. The cafeteria chain, known for comfort food like chicken fried steak, fried fish, and the LuAnn Platter, is a favorite restaurant chain of many Texans. Will we be losing Luby's Macaroni and Cheese forever? Fingers crossed the plan of liquidation don't go through.
The original article from June 4, 2020, continues below:
Restaurants are feeling the brunt of the coronavirus pandemic in full-force and sadly some are finding it impossible to keep "business as usual" after Covid-19 forced restaurants to close their doors. According to Nation's Restaurant News, Luby's Inc., parent to the Luby's Cafeteria and Fuddruckers brands, is looking to sell its real estate assets and cut back its operating division. The Houston-based company has been looking for alternatives since September.
Luby's released a statement on Wednesday, June, 3, sharing the plans of the company.
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.
However, the company is still "certain of the company's restaurants will remain open to continue serving our guests" while the company sells and pays off its debts.
What is Luby's?
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What started out as a cafeteria slowly transformed into a multi-million dollar corporation. Luby's, a publicly-traded company currently operates Luby's Cafeteria, Fuddruckers, a burger restaurant, Koo Koo Roo, a chicken restaurant, and Cheeseburger in Paradise, a burger restaurant themed around Jimmy Buffett's hit song. Currently, there is only one Cheeseburger in Paradise location open while Koo Koo Roo shut down its last location in 2014.
Chris Pappas, Luby's CEO and president, said in a statement:
We believe that proceeding with this sale process followed by distributions contemplated under a proceeds distribution plan 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.
A timeframe of the sale has not been determined and any planned sale and distribution of proceeds would have to be approved by stockholders and adopted by the company's board. Fingers crossed that this business will stay open, Luby's macaroni and cheese is the best!