“After Thursday’s 11-hour auction process, Luby’s proved to be the highest and best bidder with a final bid valued at $63.45 million,” said Peter Large, chief executive officer of Magic Brands. “Based on current estimates and assumptions, creditor recoveries are anticipated to be substantial and could reach as high as 100 percent. This is an outstanding result for our creditors.”
The results of the auction will be presented for approval by the U.S. Bankruptcy Court in the District of Delaware in Wilmington on June 22. The transaction is expected to close by July 9. “Luby’s has the capacity to support and grow the Fuddruckers brand which we believe will be to the benefit of both our corporate restaurants and franchisees,” Large said.
Luby’s operates 96 restaurants in Austin, Dallas, Houston, San Antonio, the Rio Grande Valley and other locations throughout Texas and other states. Luby’s Culinary Services provides food service management to 17 sites consisting of healthcare, higher education and corporate dining locations.
Magic Brands, LLC, based in Austin, currently operates 62 Fuddruckers locations in 11 states and 3 Koo Koo Roo restaurants in California. An additional 135 Fuddruckers restaurants are operated by franchisees.