Luby's to dissolve company, sell restaurants; locations remain open for now

Luby's announced Sept. 8 in a press release it plans to liquidate and dissolve the company and to sell its 60 locations across the state. The Texas-based restaurant chain remains open for dine-in and takeout service. (Jack Flagler/Community Impact Newspaper)
Luby's announced Sept. 8 in a press release it plans to liquidate and dissolve the company and to sell its 60 locations across the state. The Texas-based restaurant chain remains open for dine-in and takeout service. (Jack Flagler/Community Impact Newspaper)

Luby's announced Sept. 8 in a press release it plans to liquidate and dissolve the company and to sell its 60 locations across the state. The Texas-based restaurant chain remains open for dine-in and takeout service. (Jack Flagler/Community Impact Newspaper)

Luby's, the Texas chain of family restaurants that first opened in San Antonio in 1947, will liquidate and dissolve its company and distribute the proceeds from the sale of its restaurants and other assets to shareholders.

According to a press release, the restaurant chain's board of directors approved the plan Sept. 8. The company previously announced in June that it intended to sell its Luby's locations and its Fuddruckers restaurants, all of which are operated by the same company.

According to the press release, the company expects to distribute between $92 million and $123 million to its shareholders as a result of the liquidation. The company did not give an estimate of when the sales would happen and said it "could not predict" either the timing or amount of any individual transactions.

Luby's has 60 locations, all in Texas, which remain open for dine-in and takeout service. The family restaurant chain has three restaurants in Austin, two in Dallas and 13 in Houston. Some Fuddruckers restaurants are temporarily closed, but many of the burger chain's hundreds of locations are also continuing to operate.

According to Luby's the company will be removed from the New York Stock Exchange after all its assets are sold or after three years—whichever occurs first.


Luby's CEO Christopher Pappas said in a statement that the plan "will maximize value for [Luby's] stockholders" while keeping the company flexible to pursue a sale should someone offer to buy the restaurant.

Pappas said in the release the plan "also continues to provide for the potential to place the restaurant operations with well-capitalized owners moving forward."
By Jack Flagler
Jack is the editor of Community Impact Newspaper's Central Austin and Southwest Austin editions. He began his career as a sports reporter in Massachusetts and North Carolina before moving to Austin in 2018. He grew up in Maine and graduated from Boston University, but prefers tacos al pastor to lobster rolls. You can get in touch at jflagler@communityimpact.com


MOST RECENT

Federal funding is set aside for public schools to address effects of the pandemic. (Courtesy Adobe Stock)
Why Texas has not yet distributed $18 billion in federal funds intended for public schools

As budget decisions loom for school districts across Texas, state leaders are holding on to federal funds intended for public schools to use in addressing the effects of the COVID-19 pandemic.

The Electric Reliability Council of Texas said power outages are not expected April 13, while requesting energy conservation. (Iain Oldman/Community Impact Newspaper)
UPDATE: ERCOT call for energy conservation ends April 13 without need for power outages

An ERCOT official said "tight" supply and demand conditions arose on the state's electric grid April 13 due to forecasting issues amid planned, seasonal maintenance outages by some power generators.

Photo of hands holding a vaccine vial
After Austin Public Health appointments go unfilled, officials call for new distribution model

On April 12, APH filled 3,400 out of 14,000 available COVID-19 vaccine appointments in a registration window.

Masking continues to be required, with some relaxed circumstances for fully vaccinated residents. (Courtesy Adobe Stock)
Austin extends COVID-19 health rules through May 18, updates guidance for vaccinated residents

Masking continues to be required, with some relaxed circumstances for fully vaccinated residents.

The Centers for Disease Control and Prevention and U.S. Food and Drug Administration recommended health providers pause distribution of the Johnson & Johnson vaccine April 13. (Olivia Aldridge/Community Impact Newspaper)
State, federal health authorities recommend pause of Johnson & Johnson vaccine after 6 rare, severe blood clots

Hub providers in Dallas, Harris and Travis counties have all announced they will follow the recommendations and pause distribution of the Johnson & Johnson vaccine.

Recipients of the COVID-19 vaccine wait after receiving their shot at the Delco Activity Center in Northeast Austin on March 13. (Jack Flagler/Community Impact Newspaper)
National supply issues with Johnson & Johnson vaccine affect Austin-area shipments

After a manufacturing error ruined 15 million doses, the Centers for Disease Control and Prevention said the supply will not increase until the plant in Baltimore is once again allowed to participate in production.

Romeo's Pizza held its Georgetown groundbreaking April 6. (Courtesy Romeo's Pizza)
Romeo's Pizza coming to Georgetown; Vacancy Brewing opens in South Austin and more Central Texas news

Read the latest business and community news from the Central Texas area.

Photo of a Moderna vaccine vial
Austin Public Health coronavirus vaccine portal opens to all adults April 12

APH will continue outreach efforts to high-priority groups.

Austin Public Health holds a vaccination clinic at the Delco Activity Center in Northeast Austin. (Jack Flagler/Community Impact Newspaper)
Coronavirus updates from Austin, Travis County; governor bans 'vaccine passports' and more top Central Texas news

Read the most popular business and community news from the past week from Central Texas.

Tavel Bristol-Joseph has started a scholarship fund that will provide $6,000 to two Austin Community College Culinary Arts students and give them opportunity to be mentored by Bristol-Joseph and to stage at one of the Emmer & Rye group's five restaurants. (Courtesy Emmer & Rye)
Austin chef starts scholarship and mentorship program for Austin Community College students

Tavel Bristol-Joseph started the scholarship fund, which will provide $6,000 to two ACC students and give them the opportunity to stage at one of the Emmer & Rye group's five restaurants.

Snow and ice cover the pond on the southeastern side of the Mueller development in East Austin in February. (Jack Flagler/Community Impact Newspaper)
After winter storm, Austin puts together a plan for better temporary shelters

The locations, which could be schools, libraries or recreation centers, would be disconnected from traditional infrastructure and be able to sustain operations if the city were to experience widespread power or water outages.