Iconic Luby's Cafeteria Chain Slated For Liquidation

AUSTIN, TX — Citing corrosive economic effects of the coronavirus, iconic cafeteria chain Luby's — which operates three eateries in Austin — will be liquidated after an unsuccessful search for a buyer, officials announced Tuesday.

The post-liquidation plan calls for net proceeds to be distributed to stockholders, according to reports. Started in San Antonio in 1947, the company in June announced a plan to seek buyers to sell its assets. The plan calls for sold assets — estimated in value between $92 million to $123 million — to be converted into cash to satisfy shareholders.

Luby's CEO and President Christopher J. Pappas said in a statement: “We believe that moving forward with a Plan of Liquidation will maximize value for our stockholders, while also preserving the flexibility to pursue a sale of the Company should a compelling offer that delivers superior value be made. The Plan also continues to provide for the potential to place the restaurant operations with well-capitalized owners moving forward.”

The company said it would still accept an offer from a buyer should such a scenario arise. A special meeting is scheduled to determine a plan of action before liquidation is approved, company officials added.

The company operates three locations in Austin at 1410 Anderson Lane; 8176 N. Mopac Expressway; and 415 W. Slaughter Lane. The company also operates two Luby's restaurants in Dallas, nine in San Antonio and a dozen in Houston.