Luby’s liquidation, dissolution up for shareholders’ vote next week

Luby’s Inc. shareholders will vote next week on plans to liquidate and dissolve the company, owner of the Luby’s and Fuddruckers restaurant brands.

Following years of struggle for the iconic Texas cafeteria brand, Luby’s board voted unanimously on Sept. 4 to liquidate and dissolve the company. The shareholder vote has been scheduled for Nov. 17, according to filings with the U.S. Securities and Exchange Commission. An outside voting advisory firm, Institutional Shareholder Services, has recommended shareholders vote in favor of the company’s liquidation plan, Luby’s said Tuesday in a news release.

Houston restaurateurs Christopher and Harris Pappas executed an agreement on Sept. 11 that allowed the pair access to confidential Luby’s information while they evaluated whether or not to make an offer, according to a filing with the SEC.

Christopher Pappas has served as Luby’s president and chief executive officer since March 2001. He controls 18.4 percent of the company’s outstanding shares. Harris Pappas served as chief operating officer of Luby’s until his retirement in 2011 and as a member of its board until his resignation on Jan. 31, 2019. He controls 17.9 percent of outstanding shares.

The company did not answer questions about whether the Pappases were still considering an offer to buy company assets.

Chairman Gerald Bodzy said Luby’s is following the track it set with proxy filings in September, and that he couldn’t comment on the status of any talks with interested parties.

If a formal offer had been made, it likely would have been made public, said Michael Shaub, accounting professor and program director at Texas A&M University’s Mays Business School.

“I would presume that if there was a formal offer, they would inform the shareholders,” he said.

A company spokesman emphasized Luby’s has no plans to shutter anytime soon.

“The Luby’s team members are delighted to serve guests and look forward to serving them during the holidays and beyond,” the company said.

Karen Warren / Staff photographer While some Luby’s locations already have closed, the iconic Texas cafeteria brand says it will continue to serve its patrons “during the holidays and beyond.”