Luby’s Parent Company Considers Selling Chain of Restaurants
Nooooooo! "You got to be kidding me". This was the reaction of myself and a few of my fellow DJ's as we learned the news that Luby's locations all over Texas could be in for some big changes.
Before living in Victoria, I lived in the Killeen-Temple area of Texas for the last 4+ years. Everyone LOVES Luby's. The food we would bring to the radio station up there was always amazing. The breakfast was always amazing, they did amazing fried chicken, and the people were always happy to see you no matter how busy the restaurant was.
Moving to the Victoria area, I remember scanning through the internet looking for a location in the area. We don't have one in town, but when we recently asked "What restaurants would you like to see added in the Crossroads", Luby's was nearly the #1 answer. If you have been to a Luby's, you just know.
The owners of this Texas favorite have come clean with the news that it has just been impossible to keep up "business as usual" during the pandemic. The website WideOpenEats.com shared a story about Luby's parent company posting the for sale sign on the brand. Nationa's Restaurant News says Luby's parent company wants to sell its real estate assets and cut back on operations. In fact, the owners in Houston have been quietly shopping the brand since September. How could they? JK, In all seriousness 2020 has been just brutal to all businesses large and small. Especially the small local owners like many of the people who run and operate the restaurant at the local level. Below is the company's statement published on June 3rd.
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.
We believe that proceeding with this sale process followed by distributions contemplated under a proceeds distribution plan 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.