Local Luby’s Cafeterias to stay open after sale

Luby’s lovers rejoice! After announcing last year that it would dissolve the business and close all its cafeterias after more than 70 years serving their famous fried fish and other homestyle comfort food, Luby's Inc. announced June 21 that it has entered an agreement to sell the Luby’s Cafeteria brand and 32 Texas locations – including one in Beaumont and one in Port Arthur – to a newly formed affiliate of Calvin Gin.

Following the closing of the sale, valued at about $28.7 million, the Gin affiliate will be renamed Luby's Restaurants Corporation. The acquisition of the Luby's cafeterias business does not include any of the real estate owned by Luby's, nor does it include Luby’s Culinary Services or the company's Fuddruckers operations, except the single “combo Luby’s/Fuddruckers location in Webster.”

According to Luby’s Inc., the purchaser is expected to offer “almost all employees at the 32 involved locations” jobs at those restaurants, estimating the need for more than 1,000 workers in total.

The estimated $28.7 million price tag is “primarily derived from the purchaser's assumption of Luby's liabilities and the purchaser's issuance of notes to Luby's,” according to the company.

Calvin Gin, Chief Executive Officer of the purchaser, commented, "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. 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."

Gerald Bodzy, Chairman of the Board of Luby's, remarked, "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."

The sale of the Luby's Cafeteria operations is another step in the execution of the previously announced plan of Luby's to sell its assets, pay its liabilities, and return the remaining cash to shareholders under the company's previously announced plan of liquidation and dissolution approved by its shareholders on Nov. 17, 2020.

The company and its financial advisor reportedly contacted over 235 entities about selling the cafeteria business before accepting the best offer, which came from the Gin group. Luby's is actively engaged in trying to sell real estate it owns related to its cafeteria restaurant business at 25 locations, which could then be leased to the purchaser of the cafeterias, who is also assuming leases already in place at seven Luby's locations.

The sale is expected to close before the end of the company's current fiscal year.

About Luby's

The first Luby’s opened in San Antonio in 1947 and quickly became a Texas family favorite, with dozens of locations

Luby's Inc. previously announced its plan of liquidation and dissolution, which was approved by its shareholders on Nov. 17, 2020. Besides the June 21 announcement of the agreement to sell the Luby's Cafeterias business, Luby's announced the previous week that it has entered into an agreement to sell its other restaurant brand, Fuddruckers. In addition, Luby's is actively seeking buyers for its Luby's Culinary Services business segment, which provides food service management to sites like health care facilities, corporate dining locations, sports stadiums, as well as sales of certain frozen Luby's entrees through retail grocery stores, like HEB.

About Calvin Gin

Calvin Gin is a member of the storied Gin Family, who established The Flying Food Group by Sue Gin, which has grown to the third largest airline catering company in North America and provides food preparation services for others, including Starbucks, throughout the country. Gin worked in multiple roles with the Flying Food Group including Vice President for its Starbucks Business Unit. Gin has two plus decades of entrepreneurial experience not only as a business owner himself, but also as a senior-level executive in management, business development, finance, and operations. He currently is a co-founder or partner in several entities including Helios Visions, WorkPlate, and Charming Studios. Previously, he also served as the Chief Financial Officer with Blue Plate Catering Ltd. and Applause Food Services Inc.