SAN ANTONIO – A struggling Texas icon has announced its intent to sell off its assets and operations.
Luby’s on Wednesday said it will “immediately pursue” the sale of real estate assets and operating divisions, including Luby’s Cafeteria and Fuddruckers.
During the process, those restaurants will remain open.
The announcement came after Luby’s reviewed company operations, including the fallout from the coronavirus pandemic that shut down dining spaces for weeks.
“A number of stockholders have expressed their support for seeking alternatives to continuing operating the company’s restaurants in their current form in the present environment and this monetization program will seek to accomplish that task in the most efficient manner,” the company said.
Net proceeds will be distributed to stockholders after paying off debt and “other obligations.” Stockholders would have to approve a sale plan and the distribution of proceeds.
“The process will be conducted in a disciplined, expeditious and cost-effective manner which seeks to maximize returns to stockholders," the announcement says.
The first Luby’s Cafeteria opened in San Antonio in 1947. Now based in Houston, Luby’s operates 10 Luby’s Cafeterias and four Fuddruckers in the San Antonio area.