Luby’s, Inc. signs agreement to sell Luby’s cafeteria restaurant business to a subsidiary of Calvin Gin



HOUSTON, June 21, 2021 / PRNewswire / – Luby’s, Inc. (“Luby’s” or the “Company”) (NYSE: LUB) today announced that the Company has entered into an agreement to sell the Luby’s Cafeteria restaurant business to a new subsidiary of Calvin Gin.

The purchase by the Gin subsidiary (which will be renamed Luby’s Restaurants Corporation after the transaction closes) will include 32 of the existing Luby’s restaurant locations, all in Texas (listed below) and owned by the Luby’s Cafeteria brand. The acquisition of the Luby’s cafeteria business does not include any real estate owned by Luby’s, nor any of the Company’s Fuddruckers operations.1 or the Company’s culinary contract services business. The structure of the transaction will allow Luby’s to sell its real estate related to its cafeteria-restaurant business to third parties and realize shareholder value. It is currently expected, after the transaction closes, that almost all employees at the 32 affected locations will be offered positions by the buyer to remain in these stores, a job that will likely total more than 1,000 associates. It is currently expected that the sale transaction of the Luby’s cafeteria operations could provide Luby’s with approximately $ 28.7 million value (all of which, except a nominal amount, will be derived from the buyer’s assumption of Luby’s debts and the buyer’s issuance of notes to Luby’s). There can be no assurance that the Company will realize or receive the full value of such consideration. The Company does not currently plan to adjust the estimated liquidation value of the Company as a result of this transaction. This amount does not include any value that may be obtained through future sales of the underlying Luby-owned real estate at 25 of the cafeteria locations.

Mr. Gin, President and CEO of the Acquirer, said: “We are very pleased to be able to acquire the operation of these stores Luby’s Cafeteria, one of the emblematic brands of the Texas restaurant market. This transaction will allow us to continue to serve Luby’s many loyal customers at these sites and provide long-term employment opportunities to the many associates currently at these sites. ”

Gerald Bodzy, Chairman of the Board of Luby’s, said: “I couldn’t be happier than to see Calvin Gin, as well as many members of the existing management team, able to carry on the fine tradition of the Luby’s food and service brand in Texas dating back to 1947. “

The sale of the Luby’s cafeteria business is another step in the execution of Luby’s previously announced plan to sell its assets, pay off its debts and return the remaining cash to shareholders as part of the liquidation and liquidation plan. previously announced dissolution of the Company and approved by its shareholders. at November 17, 2020. The Company and its financial advisor conducted a solid sales process for the Cafeteria activity in Luby, contacting over 235 entities before accepting the best offer, which came from the Gin group. Luby’s actively endeavors to monetize the real estate it owns that are related to its cafeteria and catering business, including the 25 properties that the Company intends to sell to one or more third parties who may, at in turn, provide the purchaser with operating leases for those Properties. The purchaser will also assume the leases of seven Luby’s sites currently leased. Luby’s is recommended by Jones Lang LaSalle on these real estate sales. The Special Committee of the Board of the Company is advised by Gibson, Dunn & Crutcher LLP on legal matters. The Company is also advised by Sidley Austin LLP in matters of legal transactions. The purchaser is advised by Winston & Strawn LLP on legal matters.

The agreement between Luby’s and the buyer is subject to the normal and customary conditions for transactions of this nature. The transaction is not subject to a financing contingency. The parties currently anticipate that the transaction will be completed before the end of the Company’s current fiscal year.

About Luby
Luby’s, Inc. (NYSE: LUB) previously announced its plan for liquidation and dissolution, which was approved by its shareholders on November 17, 2020. In addition to today’s announcement of the deal to sell Luby’s Cafeterias, Luby’s announced last week that it had reached an agreement to sell its other restaurant chain, Fuddruckers. In addition, Luby’s is actively seeking buyers for its Luby’s Culinary Contract Services business segment, which provides food service management at sites including healthcare facilities, corporate restaurants, sports arenas, as well as retail. of select Luby’s frozen main dishes in retail grocery stores. Luby’s also owns real estate assets linked to its operations, for which it is also actively seeking buyers.

About Calvin Gin
Mr. Gin is a member of the famous Gin Family, which created The Flying Food Group in Sue gin, which became the third largest airline catering company in North America and provides food preparation services to others, including Starbucks, across the country. Mr. Gin has held several positions within the Flying Food Group, including that of Vice President of its Starbucks business unit. Mr. Gin has over two decades of entrepreneurial experience not only as a business owner himself, but also as a senior executive in management, business development, finance and operations. He is currently co-founder or partner of several entities including Helios Visions, WorkPlate and Charming Studios. Previously, he also served as CFO at Blue Plate Catering, Ltd. and Applause Food Services, Inc.

Forward-looking statements

This press release contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements in this press release, other than statements of historical fact, are “forward-looking statements” for the purposes of these provisions, including statements regarding sales of assets, effects of Liquidation and dissolution Plan (the “Plan”), the expected value or proceeds attributable to the sale of assets and the expected proceeds to be distributed to shareholders or the timing thereof.

Luby’s cautions readers that various factors could cause its actual financial and operating results to differ materially from those indicated by forward-looking statements made from time to time in press releases, reports, proxies, registration statements and other written communications, such as oral statements made from time to time by representatives of Luby’s. The following factors, as well as any other cautionary statements included in this press release, provide examples of risks, uncertainties and events that may cause Luby’s actual results to differ materially from the expectations described by Luby in these forward-looking statements: general matters and conditions; the effects of the COVID-19 pandemic; the impact of competition; our operational initiatives; fluctuations in the cost of commodities, including beef, poultry, seafood, dairy, cheese and produce; rising utility costs, including the costs of natural gas and other energy supplies; changes in the availability and cost of labor; the seasonality of Luby’s business; changes in government regulations, including changes in minimum wages; the effects of inflation; the availability of credit; adverse publicity relating to operations, including advertising concerning food quality, disease or other health problems or labor relations; continuous service from key management personnel; and other risks and uncertainties disclosed in Luby’s annual reports on Form 10-K and quarterly reports on Form 10-Q, including information regarding risks, uncertainties and other factors relating to the plan, the expected net proceeds from the sale of assets and proceeds to be distributed to shareholders.

Luby’s contact:

John Garilli, Luby’s, Inc. Interim President and CEO

(617) 570-4600

[email protected]

Luby’s cafeteria stores will be included in the purchase contract

Austin – East Anderson

Beaumont – IH 10 East

Brownsville – Sunrise shopping center

Conroe – Longmire

corpus Christi – Saratoga Boulevard.

Dallas – South Hampton

De Soto – North Beckley

El Paso – Hawkins Boulevard.

Ft. Value – Forest hill

Harlingen – South 99 Sunshine Strip

Houston – East highway

Houston – 730 West FM 1960

Houston – Fuqua

HoustonSouthern Mason, Katie

HoustonMeyer Park

Houston – 11250 North-West Fwy

Houston – 19668 North West Fwy

HoustonSpring cypress

Houston – Veterans Memorial

Houston – Westminster Square

Kingwood – Highway 59

Laredo – Calton Road West

McAllen – North 10e street


Port Arthur – Highway 73

San Antonio – Floyd Curl

San Antonio – Fredericksburg Road.

San Antonio – Las Palmas

San AntonioWest loop 1604 North

San Antonio – SE Military

Stafford – West Airport Boulevard.

Webster – Gulf Fwy

1Other than the Luby’s / Fuddruckers combo slot listed below in Webster (see above).

SOURCE Luby’s, Inc.

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