HOUSTON, Dec. 16, 2020 /PRNewswire/ -- Luby's, Inc.
("Luby's" or the "Company") (NYSE: LUB), today announced that the
Company has entered into an agreement to franchise 13 of its
currently Company owned Fuddruckers stores to Black Titan Holdings,
LLC, an affiliate of successful food service entrepreneur
Nicholas M. Perkins. Specific terms
of the transaction were not disclosed.
Pursuant to the transaction, Black Titan Holdings, LLC will
purchase the assets of the Company at the 13 locations listed below
and become one of the largest Fuddruckers franchisees in
the United States. It is currently
anticipated that, following the closing of the transaction, almost
all employees will be offered positions to remain at those store
locations. It is not expected 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
Superstition Springs, Mesa,
AZ
Phoenix,
AZ
Tempe,
AZ
Kansas
Kansas City,
KS
Missouri
Sunset Plaza, St. Louis,
MO
Texas
Copperfield, Houston,
TX
MacGregor, Houston,
TX
Tidwell, Houston,
TX
Kingwood,
TX
Stafford,
TX
Creekside, Tomball,
TX
Virginia
Woodbridge,
VA
The closing of the transaction is expected to occur within the
next 90 days and is subject to customary industry conditions to
closing. The transaction is not subject to a financing
contingency.
The Company commented that it is pleased to place these
locations into new hands enabling the many loyal Fuddruckers
customers at these locations to continue enjoying the famous
Fuddruckers offerings they have come to enjoy over the years. The
Company believes it is a positive signal to the marketplace that
there has been interest in the Fuddruckers brand and its
operations.
"I am excited about becoming one of the largest Fuddruckers
franchisees in the United States.
A Fuddruckers hamburger, in my opinion, has always been the
standard by which all other hamburgers should be judged.
Fuddruckers has a tremendously loyal customer base that is
passionate about the brand and the products they sell every day. I
look forward to developing lasting relationships with the
Fuddruckers employees, customers, and vendor partners. I am keenly
focused on the future of this tremendous legacy brand and building
upon its rich history," said Nicholas M.
Perkins, President of Black Titan Investment
Corporation.
This transaction is part of the execution of the previously
announced Plan of Liquidation and Dissolution of Luby's, Inc.,
where ultimately, the net proceeds from sales of all Company
assets, 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.
About Black Titan Holdings, LLC
Black Titan Holdings,
LLC is a wholly owned subsidiary of Black Titan Investment
Corporation, the special purpose entity that will solely operate
Fuddruckers Franchises. The Company is affiliated with Nicholas M. Perkins, an accomplished food
industry entrepreneur with over 15 years of experience in
multi-unit contract food service and restaurant operations
dedicated to delivery of excellent customer service, high quality
food, and memorable experiences
Contact:
Dennard Lascar Investor
Relations
Rick Black / Ken Dennard
LUB@dennardlascar.com
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, 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 reports on Form 10-K
and quarterly reports on Form 10-Q. Further information regarding
the risks, uncertainties and other factors relating the Plan, 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 the definitive proxy statement that has
been previously filed with the SEC in connection with the approval
of the Plan by the Company's stockholders.
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SOURCE Luby's, Inc.