Texas-based Luby’s Inc. took another crucial step in its liquidation plans on Monday, securing the transfer of a number of its Luby’s Cafeteria restaurants to Chicago entrepreneur Calvin Gin. The sale, which includes 32 locations in Texas and full ownership of the Luby’s Cafeteria brand, is a happy ending for the family-owned restaurant chain whose future has been on the line for months.
The sale, valued at $ 28.7 million, is expected to close in late June, according to Catering company. Under the terms of the agreement, Luby’s will retain ownership of its catering properties, which will be sold to a third party who will lease them to the new owner. Gin also said he will rehire almost all of the 1,000 employees at the 32 restaurants. He reflected on the deal in a recent declaration, expressing satisfaction with its terms and its enthusiasm to acquire “one of the iconic brands in the Texas restaurant market”.
RELATED: This Almost Extinct Burger Chain Just Rescued
This is the second major sale announced by Luby’s in less than a week. Last Friday, the restaurant company revealed it had found a buyer for its beloved Fuddruckers brand, Black Titan Franchise Systems, a subsidiary of one of its largest franchisees. The sale, valued at just under $ 20 million, is also slated to close in June.
Luby’s has been in financial difficulty since 2019 and initially announced its intention to liquidate in September 2020, estimating a total return of between $ 92 million and $ 123 million. Following the sale of Fuddruckers and the deals made with Gin, the parent company appears to be on track to achieve this goal.
Gin was chosen by Luby’s from over 235 other potential buyers and is currently a board member of several leading technology companies, including Helios Visions, Work Plate and Charming Studios. In addition to technology, he also has experience in the restaurant industry, with close ties to The Flying Food Group, one of the three largest airline catering companies in North America.
Luby’s, for his part, appeared happy with the deal. “I couldn’t be happier than to see Calvin Gin, along with many of the existing management team, able to carry on the fine tradition of the Luby Texas food and service brand that dates back to 1947,” Luby chairman Gerald Bodzy said in a press release.
Ultimately, on June 30, Luby’s Inc. will still have five of its company-owned Fuddruckers and four locations co-branded with Luby’s Cafeterias. More importantly, he will have the peace of mind that his flagship brand is in good hands.
For more information, see:
And don’t forget to Subscribe to our newsletter to get the latest restaurant news straight to your inbox.