A new deal will keep Texans eating square fish and mac and cheese for the foreseeable future. Luby's announced that it has sold its cafeteria restaurant business to a new corporation founded by entrepreneur Calvin Gin.
Selling its cafeteria business is the latest step in the process of liquidation and dissolution that the company's board of directors adopted last year. Previously, Luby's had planned to cease most restaurant operations by August 2021.
Valued at approximately $28.7 million, the deal includes 32 locations of Luby's in Texas and the Luby's brand, according to a release. Last week, the company announced it had sold the Fuddruckers brand to a franchisee for $18.5 million.
The new entity, called Luby's Restaurants Corporation, plans to offer positions to the roughly 1,000 people currently employed at those locations. According to a release, that includes one Austin location, on East Anderson Lane.
"We are so pleased to be able to acquire the operation of these Luby's Cafeteria stores, one of the iconic brands in the Texas restaurant market," Gin said in a statement. "This transaction will allow us to continue serving the many loyal Luby's customers at these locations and to provide long-term employment opportunities for the many associates currently at these locations."
Critically, the transaction does not include any of the real estate Luby's currently owns. The company plans to sell its holdings for 25 locations; the new Luby's Restaurants Corporation would then negotiate leases with the properties' new owners.
Calvin Gin is a member of the Gin family, best known for founding The Flying Food Group, a Chicago-based firm that's the third largest airline catering company in North America. He brings over two decades of experience to his role, including work at The Flying Food Group and as a co-founder and partner in businesses such as Helios Visions, WorkPlate, and Charming Studios.
"I could not be more pleased than to see Calvin Gin, along with many of the existing management team, able to carry on the fine tradition of Luby's brand of food and service in Texas that dates back to 1947," Luby's chairman of the board Gerald Bodzy added.