Luby’s closing will leave a void for some in our community
Over here on the city’s south side situated right on Saratoga sits what is left of a legendary Texas cafeteria chain. It has been empty since March 31, 2020, but it had been on soft footing for some time. On Wednesday, company officials with Houston based Luby’s said that it will sell its restaurants and assets to pay off its debt and stockholders.
Officials with Luby’s say that they 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. However, a company spokesperson said told The Southside Light News that they do not believe Corpus Christi will make the list for stores that will be reopened.
“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.
Luby’s stockholders have made it clear that they support 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 be exploring several methods to achieve that goal, including selling the company’s chief brands: Luby’s Cafeteria, Fuddruckers, and Culinary Contract Services.
The Luby’s that we see today was first opened back in 1947 in San Antonio by Bob Luby and his cousin Charles R. Johnston, but the origins run back much further.