Court OKs Luby’s restaurants deal to buy Fuddruckers, Koo-Koo-Roo chains for $61M

Court OKs Luby’s bid to buy Fuddruckers for $61M

AUSTIN, Texas — A bankruptcy court has approved the sale of Magic Brands LLC and Fuddruckers Inc. to restaurant operator Luby’s Inc.

Luby’s announced Friday it will buy all the assets of the burger chain and its affiliates for approximately $61 million in cash. The United States Bankruptcy Court in Delaware had to approve the sale.

The company said in a news release Wednesday a court has granted approval for the sale. The deal is expected to close by July 26.

Fuddruckers operates 60 Fuddruckers restaurants and three Koo-Koo-Roo locations. There also are 138 Fuddruckers franchises. Luby’s operates 96 restaurants, primarily in Texas.

Fuddruckers filed for Chapter 11 bankruptcy protection in April and Luby’s participated in an auction of its assets last week that it won.

Shares of Luby’s were unchanged Wednesday at $4.03.