HOUSTON (CBSDFW.COM) – Those loyal to the LuAnn platter may want to get to Luby’s soon.
The Houston-based cafeteria restaurant chain confirmed it is in discussions to sell some of its properties to pay down a total debt of nearly $40 million.
Luby’s operates 147 restaurants across the country, including 84 Luby’s Cafeterias, 61 Fuddruckers and two Cheeseburger in Paradise restaurants.
Recently, the chain sold eight properties to pay off debt.
Chris Pappas, President and CEO, said in a statement, “We are progressing on our asset sales program to sell company-owned properties and use the proceeds to pay down debt.”
He went on to say, “As we execute on this asset sales program, we are also pursuing a refinancing of our debt under a new credit facility… We are committed to actively pursuing these property sales and are currently in discussions to sell additional properties. Through this program, and a continual focus on superior store-level execution for service, food, and facilities, we believe we can enhance the company’s financial performance. We believe positioning our company to have lower debt, improved same-store sales throughout our restaurant portfolio, and a lower overall cost structure will enhance our returns.”
The chain has not said which properties it might consider selling in the future.
There are 13 Luby’s restaurants in the DFW area.