Texas Chain ‘Luby’s’ Set to Be Liquidated and Dissolved
If you're a fan of Luby's, this is going to be a sad story for you. The board of directors for Luby's Inc. have decided it's in the best interest of the company to liquidate its assets and dissolve the company. Luby's President and CEO Christopher J. Pappas said in a statement:
We believe that moving forward with a Plan of Liquidation will maximize value for our stockholders, while also preserving the flexibility to pursue a sale of the Company should a compelling offer that delivers superior value be made.
Of course, this doesn't mean Luby's is going away for good. Another company could buy up the restaurants and its assets and keep them open. Remember the Twinkie panic of 2012? Hostess was going bankrupt. We were going to actually run out of Twinkies. That didn't happen though. It was just a few years later in 2016 that Hostess was back with a vengeance, with an estimated value of $2.3 billion.
Luby's was started in San Antonio back in 1947 and back in June they first made the announcement they were looking to sell off the company's assets to pay down debt. It's now to the point they not only will be selling off the assets to pay off the debt, but also dissolve the company. BUT, this still doesn't mean you won't be able to go into a Luby's next year, or even a Fuddrucker's for that matter. The company owns both restaurants.
There are currently 60 Luby's restaurants across Texas and Fuddrucker's is in 26 states with 40 locations in Texas.