Skip navigation
Luby-s-sets-May-27-as-delisting-NYSE.jpg Ron Ruggless
Luby's expects to delist its shares from the New York Stock Exchange on May 27.

Luby’s expects May 27 as last trading day amid liquidation

Shareholders will get units in liquidating trust after delisting

Luby’s Inc., which has been dissolving its assets, expects its last trading day on the New York Stock Exchange to be May 27 and to issue shareholders units in a liquidating trust, the company said this week.

The Houston-based cafeteria operator, which was the parent to the Fuddruckers burger brand as well, has been selling off assets as it winds down operations. In November 2020, Luby’s shareholders voted to proceed with the company’s plan to liquidate its assets and eventually dissolve the company.

Earlier this week, Luby’s board said it would transfer remaining assets and liabilities of the company a liquidating trust on May 31.

On May 31, “all outstanding shares of the company will be cancelled and all stockholders of the company at that time will automatically receive a distribution of one liquidating trust unit for each common share held by the stockholder,” Luby’s said in a statement.

“After being distributed to the company's stockholders, the liquidating trust units will not be transferable or assignable, except by will, intestate succession or operation of law,” the company noted.

The liquidating trust will seek to sell the company's remaining assets, pay all remaining liabilities and distribute the remaining cash to the stockholders, the company said. “However, there can be no assurance as to the likelihood, timing or pricing of any sale or sales of these remaining assets or the timing or amount of the distributions,” it added.

On April 21, Luby’s issued its second quarter report for the period ended March 9.

Luby’s estimated future aggregate liquidating distributions of $2.89 per common share, which was the same as in the first quarter. It paid a 50-cent distribution for each common share on March 28, producing an estimated $2.39 future disbursement.

During the second quarter, Luby’s sold four real estate assets proceeds of about $10.3 million. In the third quarter, Luby’s sold it Culinary Contract Services business.

As of April 21, Luby’s owned 18 real estate assets, of which six were operating locations and 12 are vacant. The company had 10 Luby’s Cafeterias and two Fuddruckers (including 1 combo unit), which were managed by third parties.

Luby’s said it was actively seeking buyers for its remaining real estate assets.

Contact Ron Ruggless at [email protected]

Follow him on Twitter: @RonRuggless

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.