Fuddruckers’ Parent Company Selling Its Restaurants, Assets

By 
Scott Stewart
The Daily Record

The parent company of Fuddruckers is calling it quits, citing the coronavirus pandemic amid the reasons for exiting the restaurant industry.

Instead of filing for bankruptcy, Luby’s Inc. will liquidate its assets and operations and distribute the net proceeds to shareholders.

“The Company believes that the sale of assets pursuant to its monetization strategy and the dissolution will provide stockholders with an opportunity to receive cash distributions that maximize the value of their investment,” according to a news release. “The assets to be sold include operating divisions Luby’s Cafeterias, Fuddruckers, and the Company’s Culinary Contract Services business, as well as the Company’s real estate.”

The company will hold a special shareholder meeting to approve its liquidation plan to convert all of its assets to cash, pay off its debts and dissolve.

The company reviewed its operations and assets, seeking to find alternative ways to continue operating its restaurants by placing them with “well-capitalized owners moving forward.”

The compny estimates the sale of its assets could generate between $92 million and $123 million, or about $3 to $4 per share of common stock, as of Sept. 2.

Fuddruckers operates a restaurant at 7059 Dodge St. that is currently open for carry-out and dine-in customers, according to its website Monday morning. A post from CEO Todd Coutee on the chain’s website also notes that its restaurants “plan to be here for a long time” despite the announcement, noting the chain plans to remain open through “the holidays and beyond.”

Category:

User login

Omaha Daily Record

The Daily Record
3323 Leavenworth Street
Omaha, Nebraska
68105-1915
United States

Tele (402) 345-1303
Fax (402) 345-2351