Luby’s has agreed to sell real estate under 26 Luby’s Cafeteria units for $88 million to national landlord Store Capital Acquisitions.
The sale is part of the company’s plan of liquidation, which involves selling assets, paying liabilities, and returning leftover cash to shareholders. The strategy was first announced in September 2020 after Luby’s failed to find a buyer. It was approved by shareholders a couple of months later. The company estimated it would generate between $92 million and $123 million (or about $3–$4 per share of common stock based on 30,752,470 shares) from its liquidation. In November 2020, Luby’s announced it retained JLL, a professional services firm, to assist in the “orderly sale” of its real estate holdings.
In the year since the liquidation plan was first unveiled, Luby’s has made much progress.
In June, Luby’s agreed to sell master ownership of Fuddruckers for $18.5 million to Black Titan Franchise Systems, an affiliate of businessman Nicholas Perkins. Shortly after, the company said it would sell 32 Luby’s Cafeteria stores and master ownership of the brand for $28.7 million to an affiliate of businessman Calvin Gin. In late August, Luby’s announced that it tacked on three more stores to the agreement and that Gin assumed management of the remaining 18 Luby’s Cafeterias that are open and not part of the purchase. During the 2021 fiscal year that ended August 25, the company sold 11 real estate locations. As of August 31, Luby’s owned 54 properties, including seven that are under contract to sell.
In addition to selling Luby’s Cafeteria, Fuddruckers, and real estate, Luby’s is actively seeking buyers for its Culinary Contract Services business segment, which provides food service management to sites consisting of healthcare facilities, corporate dining locations, sports stadiums, as well as sales of certain frozen Luby’s entrees through retail grocery stores.
In terms of leadership, Luby’s announced earlier in September that CFO Steven Goodweather resigned. The board of directors appointed Winthrop Capital Advisors CFO Eric Montague as interim CFO. Montague will be paid a monthly fee of $10,000 for so long as he serves in the position.
