Luby's Inc. took another step toward dissolution Friday when it completed the sale of 26 properties to real estate investor Store Capital for $88 million.
The two parties agreed to the deal last month. It is part of the restaurant company's ongoing efforts to liquidate its assets after failing to find a buyer last year.
Luby's used some of the proceeds from this sale and others to repay its senior lender, MSD PCOF Partners VI, in full.
The Houston-based company has also sold eight other real estate assets, its two restaurant brands (Luby's Cafeterias and Fuddruckers), and has had its Paycheck Protection Program loan forgiven. It's still looking for buyers for its foodservice management business, Luby's Culinary Contract Services, as well as its packaged foods business and remaining real estate assets.
The company expects to complete its liquidation by June 30, 2022.
Luby’s was founded in 1947 in San Antonio by Bob Luby. Its namesake brand, a string of cafeterias, were its core business until it started diversifying into other brands about a decade ago. It has been struggling for years to stem a slide in sales and traffic that was made worse by the pandemic.
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