Luby's Inc. announced Monday, June 21 that the company is in an agreement to sell the brand and 32 Texas restaurant locations to an affiliate of Calvin Gin, a Chicago based entrepreneur.
The announcement said the anticipated $28.7 million transaction should close by the end of the fiscal year and will allow the over 1,000 associates to remain at the cafeteria locations.
"We are so pleased to be able to acquire the operation of these Luby's Cafeteria stores, one of the iconic brands in the Texas restaurant market," said Gin as Chief Executive Officer. "This transaction will allow us to continue serving the many loyal Luby's customers at these locations and to provide long-term employment opportunities for the many associates currently at these locations."
The company contacted over 235 entities before accepting the offer from the Gin Group, according to the release.
"On November 17, 2020 our shareholders approved the Plan of Liquidation and Dissolution (the “Plan of Liquidation“ or the “Plan”)," said a Luby's Inc. quarterly filing to the Securities and Exchange Commission. "The Plan provides for an orderly sale of our businesses, operations, and real estate, payment of our liabilities and other obligations, and an orderly wind down of any remaining operations and dissolution of the Company."
The Gin affiliate will be renamed as Luby's Restaurants Corporation once the transaction is complete.
"I could not be more pleased than to see Calvin Gin, along with many of the existing management team, able to carry on the fine tradition of Luby's brand of food and service in Texas that dates back to 1947," said Chairman of the Board of Luby's Gerald Bodzy.
