HOUSTON – Another Texas icon has fallen prey to a bleak financial situation.
Luby’s Inc. announced Wednesday that is is going to sell all operating divisions and real estate assets to pay stockholders and debts after the company has struggled financially for a long time. The cafeteria-style restaurants have been a source of comfort food for Texans since the first Luby’s was opened in San Antonio more than 70 years ago.
“During the sale process, certain of the Company’s restaurants will remain open to continue serving our guests,” the company wrote in a press release.
Before making the decision, a special committee reviewed a range of strategic alternatives that would maximize stockholder value, the company wrote.
“The Special Committee recommended this course of action to the full Board of Directors which then approved the Special Committee’s recommendations," officials wrote.
“Luby’s will explore a variety of potential transactions, including selling the Company’s operating divisions: Luby’s Cafeteria, Fuddruckers, and Culinary Contract Services, as well as its real estate, or selling the Company in its entirety. Net proceeds obtained from any such transactions, after satisfying the Company’s debt and other obligations, will ultimately be distributed to Luby’s stockholders," the company wrote.
At present, there is no definitive deadline for when the sale must go through, company officials wrote.