you picked a fine time to leave, luann
Texas' beloved Luby's Cafeteria chain reveals timeline for shuttering all remaining locations
The days of LuAnn platters are drawing to a close. Luby's expects to cease most restaurant operations by the end of its fiscal year in August, the company reports in a filing with the Securities and Exchange Commission.
The beleaguered, Texas-based cafeteria chain adopted a plan of "liquidation and dissolution" in November that will see the company sell off its assets — including the restaurants Luby's and Fuddruckers as well as its real estate holdings — and distribute the proceeds to shareholders. Luby's estimates each share will generate $3.82 in proceeds. Shares of the company's stock (NYSE: LUB) closed at $3.12 on Wednesday, February 3.
The company has been steadily closing locations statewide, including its restaurant at the corner of Post Oak and San Felipe that will become the new home of Kenny & Ziggy's. Currently, Luby's operates a dozen stores in Houston plus additional outposts in Pearland, Katy, and Stafford, according to its website.
Perkins Management Services, a Washington, D.C.-based company, acquired 13 locations of Fuddruckers in December. It will operate them as a franchisee.
In addition to winding down its restaurant operations, the company announced that Christopher Pappas has resigned as the company's CEO. John Garilli, of Winthrop Capital Advisors, will serve as interim president and chief executive officer. Pappas and his brother Harris Pappas own approximately 36-percent of the company's stock.
Among the company's various liabilities, the Small Business Administration has placed the company's $10 million Paycheck Protection Program loan under review. Luby's states that it has complied with all necessary procedures to have the loan forgiveness, but it cannot complete that process until the SBA makes it ruling. The agency tells the Houston Chronicle that all loans over $2 million are under review.