HOUSTON (Talk1370.com) -- Luby's Inc., the troubled Houston-based cafeteria chain, announced Tuesday that it plans to liquidate its assets and distribute proceeds to stockholders, and dissolve the company.
The move comes after a June announcement that the chain was looking to sell its restaurants and assets.
"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," Luby's President and CEO Christopher J. Pappas said in a statement. "The Plan also continues to provide for the potential to place the restaurant operations with well-capitalized owners moving forward."
The liquidation plan still requires the approval of stockholders.
A special committee of the company's board has been reviewing its operations and assets, deciding on the plan approved by the board on Tuesday. "This Plan of Liquidation is the next logical step in the Company's previously announced plan to maximize value of the Company through the sale of its operations and assets," Gerald Bodzy and Randolph Read, co-chairmen of the special committee responsible for the decision, said in a statement. "Our stockholders have expressed their support for seeking alternatives to continuing to operate the Company's restaurants in their current form, and we believe the Plan of Liquidation will allow the Company to accomplish that task in the most efficient manner."
According to a company press release, liquidation may bring between $92 million and $123 million in proceeds, or approximately $3.00 to $4.00 per share of common stock.
Bob Luby opened his first cafeteria in 1947 in San Antonio, before expanding to markets across the state including Austin. One location on Brodie Lane closed earlier this year due to the COVID-19 pandemic; another location on Slaughter Lane recently re-opened after being closed for several months.
