Ruby Tuesday filing for Chapter 11 bankruptcy
Hobbled by the pand e mi c a n d f a c i n g t h e s ame l ong- t e r m c hall enges as other casual d i n i n g c h a i n s , R u b y Tuesday filed for Chapter 11 bankruptcy protection early Wednesday.
The c ompany hopes to use the debt-cutting process t o i mprove i t s f i n a n c e s a n d s t a y i n b u s i n e s s , s a y i n g i n a s t a t e ment t h a t i t h a d “r e a c h e d a n u n d e r - standing with its secured l e nders t o s upport i t s restructuring.”
B u t C E O S h a w n Lederman said in a court filing the company will permanently close 185 restaurants that had shut their doors during the coronavirus pandemic. That leaves the company with 236 operating locations.
The move c o mes a s s i t - d o wn r e s t a u r a n t s have been battered by the pandemic, which has r e d u c e d t h e i r s e a t i n g capacity and scared away many patrons.
But Ruby Tuesday had been struggling for years with increased competition from fast-food and fast- casual companies, as well as reduced traffic to i ts mall- based l ocations and the rise of new f ood deli very options, Lederman said.
T h e c o mp a n y s p e - cializes i n ribs, steaks, seafood, chicken, appetizers and a garden bar.
“This announcement does not mean `Goodbye, R u b y T u e s d a y , ' ” Lederman said in a statement. “Today's actions will allow us an opportunity to reposition the company for long-term stability as we recover from the unprecedented impact of COVID-19.”