Texas-based Luby’s said that it has completed the purchase of the assets of Magic Brands, LLC, operator of the Fuddruckers and Koo Roo Roo restaurant chains.
Luby's bought Magic Brands out of bankruptcy for $63.5 million. Luby’s funded the purchase with a combination of debt and cash.
Christopher Pappas, Luby’s president and CEO, believes that Fuddruckers, a burger chain, will be more successful when paired with Luby’s. Fuddruckers has 185 locations, including 129 franchise-owned units. Koo Roo Roo has three company owned restaurants.
Luby’s has transition teams in place at Fuddruckers and Koo Roo Roo and has plans to improve operations, facilities and unit-level financial performance.