Texas-based Luby's reveals timeline for closing all remaining locations
The days of LuAnn platters are drawing to a close. Luby's expects to cease most restaurant operations by the end of its fiscal year in August, the company reports in a filing with the Securities and Exchange Commission.
The beleaguered, Texas-based cafeteria chain adopted a plan of "liquidation and dissolution" in November that will see the company sell off its assets — including the restaurants Luby's and Fuddruckers, as well as its real estate holdings — and distribute the proceeds to shareholders. Luby's estimates each share will generate $3.82 in proceeds. Shares of the company's stock (NYSE: LUB) closed at $3.12 on Wednesday, February 3.
The company has been steadily closing locations statewide, including in Central Texas. Currently, Luby's operates three stores in Austin, according to its website.
- 410 E. Anderson Ln.
- 8176 N. Mopac Expy.
- 415 W. Slaughter Ln.
Perkins Management Services, a Washington, D.C.-based company, acquired 13 locations of Fuddruckers in December. It will operate them as a franchisee.
In addition to winding down its restaurant operations, the company announced that Christopher Pappas has resigned as the company's CEO. John Garilli, of Winthrop Capital Advisors, will serve as interim president and chief executive officer. Pappas and his brother Harris Pappas own approximately 36-percent of the company's stock.
Among the company's various liabilities, the Small Business Administration has placed the company's $10 million Paycheck Protection Program loan under review. Luby's states that it has complied with all necessary procedures to have the loan forgiveness, but it cannot complete that process until the SBA makes it ruling. The agency tells the Houston Chronicle that all loans over $2 million are under review.