Luby’s Inc., the Texas-based parent company of Luby’s Cafeteria and Fuddruckers restaurants, is ready to throw in the towel and sell off its assets in the wake of the coronavirus pandemic's decimation of the industry.
“The novel coronavirus disease pandemic has had a significant impact on our level of operations, guest behavior, guest traffic, and the number of locations where we and our Fuddruckers franchisees operate,” the company wrote in new Securities and Exchange Commission filings.
“Liquidation is imminent,” according to the filings, and the company expects most of its assets to be sold before the end of the year. It plans to sell them off entirely by June 30, 2022.
The chain was founded in San Antonio in 1947. But the pandemic crushed its business after shutting down all of its locations entirely beginning on March 31 due to COVID-19.
Like many restaurants, the chain’s storefronts struggled mightily amid coronavirus closures as the pandemic rattled the U.S. economy for the rest of 2020.
“Prior to the onset of the COVID-19 pandemic, we operated 118 restaurants. As of December 16, 2020, we operated 83 restaurants,” the company reported in the filings.
Luby’s board of directors said in September that the company said shareholders had approved a plan to sell off its assets – then-CEO and President Christopher Pappas said officials were open to selling the company entirely.
“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," he said at the time.
He resigned from his position last week, although he remains on the board.