The Austin-based company Magic Brands, LLC and Fuddruckers Inc. received court approval of the sale of their assets to Texas-based Luby’s, Inc. yesterday.   Luby’s will pay $63.45 million for nearly all of the bankrupt company’s assets.

Luby’s operates 96 restaurants primarily across Texas, and will now own Magic Brands’ 62 restaurants spanning 11 states.

Magic Brands and Fuddruckers filed for Chapter 11 bankruptcy protection in April.  Chapter 11 bankruptcy allows for a business to continue operating under the supervision of a court, while plans are made to restructure the company.   Magic Brands and Fuddruckers were up for auction for nine hours, coming down between Luby’s and Tavistock Ventures, who only bid $40 million.

Transactions are expected to be finalized by July 26th, 2010.

If you or someone you know are considering filing for Chapter 11 bankruptcy, contact the Galveston Chapter 11 bankruptcy attorneys of Gipson & Norman at 281-332-4800 to learn more about your rights.