RIP, Luby’s

The end of an era.

Looks like the days of LuAnn platters are coming to an end. Luby’s board of directors has “approved and adopted a plan of liquidation and dissolution,” the company announced.

The plan will need to be approved by the company’s shareholders. A date for that vote was not included in today’s announcement.

Previously, Luby’s stated it would seek a sale of its assets that would pay off its debts and generate money for its stockholders. Following the liquidation plan will generate between $92 million and $123 million, according to the company’s estimates. That represents between $3 and $4 per share of its stock (approximately 30.7 million shares outstanding).

“This plan of liquidation is the next logical step in the company’s previously announced plan to maximize value of the company through the sale of its operations and assets,” Gerald Bodzy and Randolph Read, co-chairmen of the special committee responsible for the decision, said in a statement. “Our stockholders have expressed their support for seeking alternatives to continuing to operate the company’s restaurants in their current form, and we believe the plan of liquidation will allow the company to accomplish that task in the most efficient manner.”

Ultimately, the company intends to converts all of its assets into cash, resolve its debts, and then file a certificate of dissolution. Its stock (NYSE: LUB) would be delisted from the New York Stock Exchange at that point or possibly sooner according to the exchange’s rules.

While a slim possibility exists that a buyer could be found that would keep the Houston-based cafeteria chain whole — Luby’s also owns Fuddrucker’s — the more likely plan seems to be that the restaurants will close and the company’s real estate holdings and other assets will be sold. Still, the company argues that a buyer who might preserve the restaurants is possible.

I assume Fuddrucker’s will continue as an entity, just owned by some other conglomerate. As for Luby’s, well, as someone said, tastes changed but Luby’s didn’t. Life is like that sometimes, unfortunately. I don’t have the emotional attachment to the place that natives do, but I sure do know some folks that are broken up about this. Texas Monthly, Houstonia, and the Chron have more.

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3 Responses to RIP, Luby’s

  1. mollusk says:

    Once upon a time I was watching a then new King of the Hill with friends in California. They looked at me like I’d grown antennae when I burst out laughing when someone called LuAnn Platter by her full name – it was the first time I’d heard her surname.

    (***ah, disappearing cultural icons… sniff***)

  2. C.L. says:

    Looks like The Texas Bucket List television show folks are going to have to find another advertiser…

  3. Bill Daniels says:

    This is a sad day for Texas, but not unexpected. As Kuff says, tastes change, and I bet the virus put the final nail in the coffin. First Wyatt’s, now Lubys. Hopefully the Dinner Bell Cafeteria can survive.

    I really thought when the Pappas Bros. bought into Luby’s it would turn around.

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