SAN ANTONIO – It looks to be bad news for Luby’s lovers. The will-they-or-won’t-they close dilemma seems to be leaning towards the latter.
Fox 7 in Austin found governmental filings that show the restaurant posted a $3 million loss in its first fiscal quarter, while also settling 24 leases of closed Luby’s properties.
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Notes from the filings of the beloved food chain state that “liquidation is imminent” and that “the likelihood is remote that we will return from liquidation.”
Luby’s, which started in San Antonio in 1947, has been back and forth over the past year with rumors of closings and reopenings amid the coronavirus pandemic.
Last June, Luby’s announced that it intended to sell off all assets and operations, including Fuddruckers, with proceeds going towards paying debts and other obligations.
In September, the board of directors of Luby’s Inc. announced that it had adopted a plan to liquidate and dissolve the company.
The filings show that Luby’s applied for, and received $10 million in PPP loans in April 2020 as part of the CARES Act and that the company submitted an application for the forgiveness of the full amount of the loan which it expects to receive.
“It is estimated that most restaurant operations would cease operations under our ownership by the end of fiscal 2021,” the filing states, and “that a majority of [Luby’s] assets will be sold by December 31, 2021.”
There are still several Luby’s restaurants that are currently open in San Antonio.