Luby’s has announced that the United States Bankruptcy Court for the District of Delaware has approved the sale of substantially all of the assets of Fuddruckers, Inc., Magic Brands, LLC and certain of their affiliates (collectively, “Fuddruckers”) to Luby’s, Inc. for approximately $61 million in cash.  Luby’s, Inc. will also assume certain of Fuddruckers’ obligations, real estate leases and contracts and will pay an additional $2.45 million in cash if it does not assume certain specified contracts.

“We were pleased to win the auction.  Fuddruckers will be an excellent addition to our restaurant family. After closing this acquisition, we will focus on existing and newly acquired unit level performance, establishing effective Fuddruckers franchise community relationships, and our expansion plans for our brands,” said Christopher J. Pappas, President and Chief Executive Officer of Luby’s, Inc. Fuddruckers currently operates 62 Fuddruckers locations and 3 Koo-Koo-Roo locations, and franchisees currently operate an additional 135 Fuddruckers locations.

The transaction is expected to close on or before July 26, 2010, subject to the satisfaction or waiver of customary closing conditions. Upon the closing of this transaction, Luby’s, Inc. will hold a conference call outlining the benefits of this acquisition.

Luby’s, Inc. operates 96 restaurants in Austin, Dallas, Houston, San Antonio, the Rio Grande Valley and other locations throughout Texas and other states.  Luby’s provides its customers with quality home-style food, value pricing, and outstanding customer service.  Luby’s Culinary Services provides food service management to 17 sites consisting of healthcare, higher education and corporate dining locations.

RestaurantNews.com provides restaurant press release distribution.
For more information: http://www.RestaurantNews.com/press-release/



Subscribe to our RSS feed!