Members of the corporate’s board introduced on Tuesday a plan to liquidate, which incorporates promoting belongings and actual property and returning money to shareholders.

Luby’s Cafeteria dates again to 1947. The Texas chain serves consolation meals, together with rooster fried steak, roast rooster and ribeyes. Fuddruckers focuses on hamburgers. Each eating places have suffered throughout the pandemic: At Luby’s (LUB), restaurant gross sales fell 75% within the quarter ending June Three in comparison with the identical interval final 12 months. At Fuddruckers, gross sales fell practically 91%.

Luby’s had introduced that it was pursuing a sale in June. The liquidation plan is “the subsequent logical step,” members of the board mentioned in an announcement.

“Our stockholders have expressed their assist for looking for alternate options to persevering with to function the corporate’s eating places of their present type, and we consider the [liquidation plan] will enable the corporate to perform that job in probably the most environment friendly method,” they added. Stockholders should approve the plan earlier than it strikes ahead.

As of June 3, there have been 76 Luby’s Cafeteria places and 31 Fuddrucker’s Eating places, based on the corporate’s most up-to-date quarterly monetary report.

LEAVE A REPLY

Please enter your comment!
Please enter your name here