SAN ANTONIA – Houston Luby’s Inc. (NYSE: LUB) completes liquidation process.
The restaurant plans to stop trading its shares on the New York Stock Exchange on May 27. Then on May 31 all other assets and liabilities of the company will be transferred to the liquidation trust and the company will be liquidated.
On May 31, all Luby’s shareholders will automatically receive a distribution of one liquidation trust unit per ordinary share.
The liquidation trust aims to sell the company’s remaining assets, pay off all remaining liabilities and distribute the remaining funds among shareholders in one or more distributions as soon as possible, Lubi said, but there can be no guarantee as to timing or other details.
So far in the liquidation process, Luby shareholders have received distributions of $ 2 per share in November and 50 cents per share in March, and on May 5 the company announced that another 20 cents per share would be paid on May 24.
As of May 5, Luby’s was still in the process of selling the remaining 18 properties, including seven under a contract of sale. On April 21, Luby’s reported that six of the 18 vacancies were open and 12 were vacant.
On March 28, Luby’s completed the sale of its business under culinary contracts, the last of three major divisions. Culinary Concession LLC, wholly owned by Pappas Restaurants Inc. from Houston, bought the CCS business, which did not include Luby’s business on frozen packaged products.
Last year, Luby’s closed the sale of its Fuddruckers franchise business unit and a separate deal to sell the Luby’s Cafeterias brand and several operating locations. The new-owned Fuddruckers announced plans to expand in March. The hamburger chain has signed a lease with Brookfield Properties to open 10 new locations in malls across the U.S., including one at Willowbrook Mall in northwest Houston.
Luby’s Inc. dealt with disappointing financial results long before the pandemic. Efforts to reduce the company’s financial performance have included closing and selling low-performing restaurants, as well as converting some Fuddruckers affiliates owned by the company into franchises. But COVID-19 created additional obstacles.
Editor’s Note: This story is published through Fr. partnership between KSAT and the San Antonio Business Journal.
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