Luby’s Inc.’s board of directors on Tuesday gave the go-ahead to a plan for liquidating the company’s assets, indicating the failure to find a buyer.
The parent to the Luby’s Cafeteria and Fuddruckers brands has been seeking strategic alternatives since last September. In June, the Houston-based company indicated a sale of assets would likely be the best option for maximizing shareholder value.
The plan of liquidation now goes to shareholders for their approval at a special meeting, yet to be scheduled. The assets to be sold include the operating divisions of Luby’s Cafeterias, Fuddruckers, and the company’s Culinary Contract Services business, as well as real estate.
The company estimates the sale of assets could generate between $92 million and $123 million.
Chris Pappas, CEO and president of Luby’s, said in a statement that the board’s plan is the “next logical step in the company’s previously announced plan to maximize value of the company through the sale of its operations and assets.”
Pappas, however, said the plan still leaves room for the possible sale of the company “should a compelling offer that delivers superior value be made. The plan also continues to provide for the potential to place the restaurant operations with well-capitalized owners moving forward.”
As of Jan. 21, Luby’s operated 118 restaurants nationally. The company also franchised 95 Fuddruckers, and the Culinary Contract Services division provided foodservice management to 33 healthcare, corporate dining and sports stadium sites.
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