HOUSTON — The Luby’s cafeteria-style restaurant chain says it will sell its restaurants and assists to pay off its debt and stockholders.
The Houston-based company announced Wednesday it will immediately pursue the sale of its operating divisions and assets, including its real estate assets, and distribute the net proceeds to stockholders after payment of debt and other obligations.
During the sale process, some of the company’s restaurants will remain open to continue serving guests.
“We believe that proceeding with this sale process followed by distributions contemplated under a proceeds distribution plan 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,” Christopher J. Pappas, CEO and president of Luby’s,” said in a press release.
The company said stockholders have expressed their support for seeking alternatives to continuing operating the company’s restaurants in their current form and this monetization program will seek to accomplish that task in the most efficient manner.
Luby’s said it will explore a variety of potential transactions, including selling the company’s operating divisions: Luby’s Cafeteria, Fuddruckers, and Culinary Contract Services, as well as its real estate, or selling the company in its entirety.
The net proceeds from any such transactions, after satisfying the Luby’s debt and other obligations, will ultimately be distributed to stockholders.
If Luby’s receives an offer which would result in a sale of the company in its entirety, the company might pursue the move if it provides superior value to stockholders in comparison to the plan to sale off it’s assets.
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