The LuAnn likely will become a meal of the past.
The board of directors for the parent company of Texas-based chains Luby’s and Fuddruckers approved a plan to liquidate both restaurants, the company said in a news release Tuesday. Luby’s Inc. plans to distribute approximately $92 million to $123 million to its stockholders, and then dissolve the company, the release said.
The liquidation plan could also result in a sale, The Dallas Morning News reported.
Texas restaurants Fuddruckers and Luby’s announce plans to liquidate https://t.co/vIyWdS1Dyt
— Dallas Morning News (@dallasnews) September 8, 2020
The first Luby’s Cafeteria opened in San Antonio in 1947, KSAT reported. It serves comfort food, including fried steak and roast chicken, along with its signature LuAnn value meal.
Fuddruckers was started by Dallas restaurateur Phil Romano in 1979, the Morning News reported. The restaurant offered consumers a more theatrical experience at a higher price point while competing with hamburger giant McDonald’s, the newspaper reported.
According to the company’s most recent quarterly financial report, there were 76 Luby’s Cafeteria locations and 31 Fuddrucker’s restaurants as of June 3, CNN reported. Both chains have suffered large losses due to the coronavirus pandemic. Luby’s sales fell 75% in its most recent quarter, while sales at Fuddrucker’s dropped nearly 91%, according to CNN.
“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," Luby’s CEO and President Christopher J. Pappas said in a statement. "The plan also continues to provide for the potential to place the restaurant operations with well-capitalized owners moving forward.”
Cox Media Group
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