Fuddruckers, Luby’s, J.C. Penney All Face Upheavals This Week
The retail and restaurant apocalypse continues as we roll through another month of the coronavirus worldwide pandemic. Even though Louisiana will be moving into Phase 3 re-opening, according to a press conference from Governor John Bel Edwards today, it seems like it might be too late for some businesses.
The parent company of beloved Texas based restaurant chains Luby's and Fuddruckers announced earlier this week that they plan to liquidate both eateries. According to the Dallas News, "Luby’s Inc. could distribute approximately $92 million to $123 million to its stockholders, then dissolve the company." The Luby's website has a statement from COO Todd Coutee that says although the recent news in the press was shocking, as of now they are still open and operating 80 Fuddruckers and Luby's restaurants.
As far as JC Penney goes, USA Today says that during a bankruptcy hearing on Wednesday, the company announced they have a tentative deal to sell the business, and all the stores to a group of mall owners and lenders to avoid liquidation. Simon Property Group, Brookfield Property Group, and other lenders will be able to save at least 70,000 jobs and 600 stores. The company had previously announced that they would be closing 242 stores nationwide, after filing for Chapter 11 bankruptcy protection in May.
A lot of people's livelihoods are on the line for these businesses, and we are sending out the best of wishes to those who might be affected.