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Fuddruckers sold to Luby’s

LOS ANGELES, CA — Magic Brands, LLC and Fuddruckers, Inc. (collectively, “Fuddruckers”) has sold substantially all of its assets to Luby’s, Inc. (NYSE:LUB, “Luby’s”) under Section 363 of the Bankruptcy Code for approximately $63.45 million. Luby’s was selected as the highest and best bidder at a highly competitive auction held on June 17, 2010 and the transaction was approved by the Bankruptcy Court on June 23, 2010. FocalPoint Securities, LLC (“FocalPoint”) served as exclusive investment banker to Fuddruckers. Goulston & Storrs acted as lead bankruptcy counsel to Fuddruckers.

“On behalf of our entire management and professional team, I would like to express how pleased we are with the success of the competitive auction process. Luby’s has the capacity to support and grow the Fuddruckers brand which we believe will be to the benefit of both our corporate restaurants and franchisees,” stated Magic Brands CEO, Peter Large. Mr. Large went on to say: “Based on current estimates and assumptions, creditor recoveries are anticipated to be substantial. This is an outstanding result that could not have been achieved without FocalPoint’s sound advice, commitment and expertise throughout the process.”

Rod Guinn, Restaurant Industry Coverage Leader at FocalPoint, commented, “We are fortunate to have worked with as dedicated a management team to achieve such a successful outcome.” In addition to the sale process, FocalPoint advised Fuddruckers on other aspects of the transaction including the renegotiation of a 22 location master lease that allowed seven profitable locations to be retained while exiting the less desirable locations, the impact of which contributed to success of the auction. Duane Stullich, Managing Director at FocalPoint, added, “The premium valuation achieved through this process has maximized value for all stakeholders. It could not have been accomplished without the full commitment of management and the contributions of Goulston & Storrs. We are honored to be part of such an outstanding team and outcome.” FocalPoint also testified in support of the sale in bankruptcy court in Delaware.

About Fuddruckers
Based in Austin, Texas, Magic Brands, LLC currently operates 62 Fuddruckers locations in 11 states and 3 Koo Koo Roo restaurants in California. An additional 135 Fuddruckers restaurants are operated by franchisees who are small business owners and multi-unit operators. Since its founding in 1980, Fuddruckers has delivered uncompromised quality and freshness with its own brand of always fresh, never frozen, 100% All-American, premium-cut, vegetarian-fed beef. Fuddruckers 1/3, 1/2, 2/3 and one-pound Fudds Prime burgers are grilled to order and placed on a Fuddruckers scratch-baked bun made fresh daily in Fuddruckers restaurant bakeries — ready for guests to pile it high at Fuddruckers Market Fresh Produce bar for a Build Your Own Burger experience like none other.

About FocalPoint Securities, LLC
FocalPoint is an independent investment bank, specializing in mergers and acquisitions, private placements (both debt and equity), financial restructurings and distressed transactions. The firm’s primary focus is on middle-market companies. For more information, please visit www.focalpointllc.com.

Please contact either Duane Stullich at 310-405-7070 or Rod Guinn at 505-828-4662 with any questions about this transaction. Mr. Stullich or Mr. Guinn can also be contacted via email at dstullich@focalpointllc.com and rguinn@focalpointllc.com, respectively.