Luby's To Sell Cafeteria Restaurant Business For $28.7M

Luby’s Inc LUB inked an agreement to sell its cafeteria restaurant business to a newly formed affiliate of Calvin Gin.
The sale could provide Luby’s with about $28.7 million of value, although there is no assurance for such consideration.
The business will be renamed Luby’s Restaurants Corporation following the close of the transaction.
The purchase will include 32 of the existing locations of Luby’s restaurants, all in Texas.
The acquisition does not include Luby’s real estate, Fuddruckers operations, or the Company’s Culinary Contract Service business.
The sale is another step in executing the previously announced plan of Luby’s to sell its assets, pay its liabilities, and return the remaining cash to shareholders under the Company’s previously announced plan of liquidation and dissolution approved by its shareholders on November 17, 2020.
Luby’s held 7.8 million in cash and equivalents as of February 28, 2021.
“This transaction will allow us to continue serving the many loyal Luby’s customers at these locations and to provide long-term employment opportunities for the many associates currently at these locations,” said Calvin Gin.
Price action: LUB shares are trading higher by 1.85% at $3.86 on the last check Monday.