HOUSTON, March 17, 2021 /PRNewswire/ -- Luby's, Inc.
("Luby's" or the "Company") (NYSE: LUB), today announced the
Company has completed the sale of certain Company-owned Fuddruckers
stores and the franchise of those stores to affiliates of Black
Titan Holdings, LLC ("Black Titan"), an affiliate of Nicholas M. Perkins. Specific terms of the
transaction were not disclosed.
Under the previously disclosed transaction, Black Titan has now
completed the purchase of the assets of the Company at the eight
locations listed below thereby becoming one of the largest
Fuddruckers franchisees in the United
States. The Company understands that Black Titan seeks to
retain almost all employees at those store locations and does not
expect that there will be any disruption of business at these
locations as a result of the transaction.
The locations covered by this transaction include:
Arizona
|
Glendale,
AZ
|
|
Mesa, AZ
(Superstition Springs)
|
|
Phoenix,
AZ
|
Texas
|
Houston, TX
(Copperfield)
|
|
Houston, TX
(Tidwell)
|
|
Kingwood,
TX
|
|
Stafford,
TX
|
Virginia
|
Woodbridge,
VA
|
The Company currently expects the closing of the previously
announced transactions for the Tempe,
AZ, Kansas City, KS,
St. Louis, MO (Sunset Plaza),
Houston, TX (MacGregor Way) and
Tomball, TX (Creekside Park) Fuddruckers stores with Black
Titan to occur shortly.
Sale/Franchise of Fuddruckers Store to Affiliate of
Christopher Pappas
The Company also announced that on February 25, 2021 it completed the sale and
franchising of its previously owned Fuddruckers store located on
Town and Country Way in Houston,
Texas to HPCP Investments, LLC, an affiliate of Christopher Pappas, a director and the former
chief executive officer of Luby's, Inc.
The Fuddruckers locations included in these transactions are
open for business under their new ownership to serve their many
loyal customers.
Each of these transactions was approved by a Special Committee
of the Board of Directors comprised of independent directors and
are monetization events under the Company's previously announced
plan of liquidation and dissolution which was approved by the
Company's Board of Directors and its stockholders, where
ultimately, any net proceeds after expenses and liabilities will be
distributed to Luby's stockholders.
About Luby's
Luby's, Inc. (NYSE: LUB) operates two core restaurant brands:
Luby's Cafeterias and Fuddruckers. Luby's is also the franchisor
for the Fuddruckers restaurant brand. In addition, through its
Luby's Culinary Contract Services business segment, Luby's provides
food service management to sites consisting of healthcare,
corporate dining locations, sports stadiums, and sales through
retail grocery stores. Luby's is operating these businesses pending
their sale under its previously announced plan of liquidation and
dissolution referenced above.
About Black Titan Holdings, LLC
Black Titan Holdings, LLC is a wholly owned subsidiary of Black
Titan Investment Corporation, the special purpose entity that
solely operate Fuddruckers franchises. The Company is affiliated
with Nicholas M. Perkins.
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
contained in this press release, other than statements of
historical fact, are "forward-looking statements" for purposes of
these provisions, including the statements regarding sales of
assets, potential continued employment of employees after the
above-referenced transactions, effects of the plan of liquidation
and dissolution, expected proceeds from the sale of assets, and
expected proceeds to be distributed to stockholders or the timing
thereof.
Luby's cautions readers that various factors could cause its
actual financial and operational results to differ materially from
those indicated by forward-looking statements made from
time-to-time in news releases, reports, proxy statements,
registration statements, and other written communications, as well
as oral statements made from time to time by representatives of
Luby's. The following factors, as well as any other cautionary
language 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 Luby's describes in such
forward-looking statements: general business and economic
conditions; the effects of the COVID-19 pandemic; the impact of
competition; our operating initiatives; fluctuations in the costs
of commodities, including beef, poultry, seafood, dairy, cheese and
produce; increases in 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
governmental regulations, including changes in minimum wages; the
effects of inflation; the availability of credit; unfavorable
publicity relating to operations, including publicity concerning
food quality, illness or other health concerns or labor relations;
the continued service of key management personnel; and other risks
and uncertainties disclosed in Luby's annual report on Form 10-K
and quarterly reports on Form 10-Q. Further information regarding
the risks, uncertainties and other factors relating to the plan of
liquidation and dissolution, the expected net proceeds from the
sale of assets, and expected proceeds to be distributed to
stockholders, are discussed under the section "Risk Factors" in
Luby's annual report on Form 10-K.
For additional information contact:
Dennard Lascar Investor
Relations
Rick Black / Ken Dennard
LUB@dennardlascar.com
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SOURCE Luby's, Inc.