SAN ANTONIO – Houston-based Luby’s Inc. (NYSE: LUB) is wrapping up its liquidation process.
The restaurant company plans to stop trading its shares on the New York Stock Exchange on May 27. Then on May 31, all of the company’s remaining assets and liabilities will be transferred to a liquidating trust, and the company will be dissolved.
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On May 31, all Luby’s stockholders will automatically receive a distribution of one liquidating trust unit for each common share held.
The liquidating trust aims to sell the company’s remaining assets, pay all remaining liabilities, and distribute the remaining cash to the stockholders in one or more distributions as soon as practical, Luby’s said, but there can be no guarantee about the timing or other details.
So far during the liquidation process, Luby’s shareholders have received distributions of $2 per share in November and 50 cents per share in March, and the company announced May 5 that another 20-cents-per-share distribution will be paid on May 24.
As of the May 5 announcement, Luby’s still was in the process of selling its remaining 18 real estate locations, including seven under contract to be sold. On April 21, Luby’s said six of the 18 locations were operating and 12 were vacant.
On March 28, Luby’s completed the sale of its Culinary Contract Services business, the last of its three main business units. Culinary Concessions LLC, which is wholly owned by Houston-based Pappas Restaurants Inc., bought the CCS business, which did not include Luby’s frozen packaged foods business.
Last year, Luby’s closed on the sale of its Fuddruckers franchise business unit and on a separate deal to sell its Luby’s Cafeterias brand name and multiple operating locations. Under its new ownership, Fuddruckers announced expansion plans in March. The burger chain signed leases with Brookfield Properties to open 10 new locations at malls across the U.S., including one at Willowbrook Mall in northwest Houston.
Luby’s Inc. had been dealing with disappointing financial results long before the pandemic hit. Efforts to turn around the company’s financial performance have included closing and selling off underperforming restaurants as well as converting some company-owned Fuddruckers locations to franchise locations. But COVID-19 created additional hurdles.
Editor’s note: This story was published through a partnership between KSAT and the San Antonio Business Journal.
Click here to read the full story in the San Antonio Business Journal.