Luby's announced the Company has completed the sale of certain Company-owned Fuddruckers stores and the franchise of those stores to affiliates of Black Titan Holdings, LLC, an affiliate of Nicholas M. Perkins. Specific terms of the transaction were not disclosed.
Under the previously disclosed transaction, Black Titan has now completed the purchase of the assets of the Company at the eight locations listed below thereby becoming one of the largest Fuddruckers franchisees in the United States. The Company understands that Black Titan seeks to retain almost all employees at those store locations and does not expect that there will be any disruption of business at these locations as a result of the transaction.
The locations covered by this transaction include:
Mesa (Superstition Springs)
The Company currently expects the closing of the previously announced transactions for the Tempe, Arizona, Kansas City, Kansas, St. Louis, Missouri (Sunset Plaza), Houston (MacGregor Way) and Tomball, Texas (Creekside Park) Fuddruckers stores with Black Titan to occur shortly.
Sale/Franchise of Fuddruckers Store to Affiliate of Christopher Pappas
The Company also announced that on February 25, 2021 it completed the sale and franchising of its previously owned Fuddruckers store located on Town and Country Way in Houston, Texas to HPCP Investments, LLC, an affiliate of Christopher Pappas, a director and the former chief executive officer of Luby's, Inc.
The Fuddruckers locations included in these transactions are open for business under their new ownership to serve their many loyal customers.
Each of these transactions was approved by a Special Committee of the Board of Directors comprised of independent directors and are monetization events under the Company's previously announced plan of liquidation and dissolution which was approved by the Company's Board of Directors and its stockholders, where ultimately, any net proceeds after expenses and liabilities will be distributed to Luby's stockholders.