Restaurant and food service giant, Luby's Inc., has announced its purchase of Fuddruckers and all related affiliates. The deal is slated to finalized in bankruptcy court next month.
Luby's announced that it will purchase substantially all of the assets of Fuddruckers, Inc., Magic Brands, LLC and certain of their affiliates (collectively, "Fuddruckers") for approximately $61 million of cash.
Luby's will also assume certain of Fuddruckers' obligations, real estate leases and contracts and will pay an additional $2.45 million of cash if it does not assume certain specified contracts. Luby's will fund the purchase from cash and an expansion of its credit facility.
Fuddruckers currently operates 60 Fuddruckers locations and three Koo-Koo-Roo locations, and franchisees currently operate an additional 138 Fuddruckers locations.
Fuddruckers filed for Chapter 11 bankruptcy protection on April 21, 2010. Luby's participated in an auction of substantially all of Fuddruckers' assets on June 17, 2010, and was declared the successful bidder at the conclusion of the auction. The sale to Luby's remains subject to the approval of the United States Bankruptcy Court for the District of Delaware.
The Bankruptcy Court has scheduled the final hearing on the sale motion for June 22, 2010, and the transaction is expected to close on or before July 9, 2010, subject to the satisfaction or waiver of other customary closing conditions.
Luby's operates 96 restaurants in Austin, Dallas, Houston, San Antonio, the Rio Grande Valley and various locations throughout Texas and other states.
Luby's culinary services provides foodservice management consisting of healthcare, higher education and corporate dining locations.
Luby's opened its doors in Edinburg on W. University in 2001.