Luby's Inc., which is in the process of liquidating as a public company, has raised estimates of per-share value about 15 cents since last quarter, reflecting its real estate sales and continuing operations, the company reported late Monday.
The Houston-based company, which has agreed to sell its cafeteria and Fuddruckers brands, said liquidation estimates were raised to $4.13 a share for the third quarter ended June 2.
“This amount represents an increase of 15 [cents] per share compared to last quarter's estimate owing primarily to actual realization from completed real estate transactions as well as achieving better operating results than previously forecasted,” the company said in a statement.
Since the quarter’s end, Luby’s announced agreements to sell its Fuddruckers business to North Carolina-based Black Titan Franchise Systems LLC in an $18.5 million deal and its Luby’s Cafeteria business and 32 existing locations to an affiliate of entrepreneur Calvin Gin in a $28.7 million deal.
Black Titan is a newly formed affiliate of Nicholas Perkins and Black Titan Holdings LLC, which is the largest Fuddruckers franchise operator. Luby’s previously sold 13 company-owned Fuddruckers restaurants to Perkins.
Luby’s shareholders in November approved the liquidation plan, which has targeted June 30, 2022, as a completion date.
“The actual timing of the sale of the company's operating businesses and real estate holdings cannot be determined with any specificity at this time,” the company advised. “It is not possible to predict with certainty the timing or aggregate amount which may ultimately be distributed to our shareholders and no assurance can be given that the distributions will equal or exceed the estimate.”
During fiscal 2021 through July 19, Luby’s said it had closed on the sale of seven properties for total net proceeds of about $16.9 million. Four of the seven properties were sold in June for net proceeds of about $9.1 million. “Proceeds from property sales have been used primarily to reduce our outstanding debt balance,” the company said.
Luby’s operates 55 Luby's Cafeterias and nine Fuddruckers, as well as its on-site culinary services at 27 locations.
“Operationally, it is business as usual as we progress through the transition of these iconic brands to their new owners,” the company said.
Luby's said it is actively seeking buyers for its Luby's Culinary Contract Services division and its retail grocery business.
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