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“During the sale process, certain of the company’s restaurants will remain open to continue serving our guests,” according to a press release from the Houston-based company. Luby's plans to distribute sale proceeds to stockholders after it pays debt and other outstanding obligations.
The decision followed a review of operations, including the impact of the COVID-19 pandemic, which forced diners to shelter in place for more than two months.
While Luby's obtained $10 million through the federal Payroll Protection Program to protect some of its workers, it still furloughed half of its corporate office and administrative staff due to the health crisis. Luby's says a portion of that loan should be eligible for forgiveness.
After opening its first restaurant in San Antonio in 1947, the chain grew into a Texas comfort-food staple popular for weeknight family dinners and after-church gatherings.
During the height of its popularity in the '80s, the chain had more than 100 locations. That number dwindled as the company adjusted to economic difficulties and changing consumer tastes.
Luby's relocated to Houston in 2004 after a change in ownership.
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