Luby's to close more restaurants to help pay off debt amid declining sales

HOUSTON, Texas (KTRK) -- Luby's announced it plans to shutter more restaurants after closing eight properties in May due to declining sales.

The sale totaled $11.6 million, helping the company pay down its $39.5 million outstanding debt.

President and CEO Chris Pappas says the company plans to sell off more properties. It's also looking at refinancing the debt under a new credit facility.

"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," Pappas said in a statement on Friday.

Selling off the restaurants was part of an asset sales program that the company initiated on April 23, 2018 and expanded on July 16, 2018.

In July, it reported a $14.1 million loss from continuing operations.

Fuddruckers, combo locations and Cheeseburger in Paradise are also part of the Luby's Cafeteria holdings.

Luby's, Inc. still operates 147 restaurants nationwide as of Aug. 29, 2018.

There's no word whether any of the restaurants that will close are in Houston.