Restaurant chain Ruby Tuesday joins the growing list as another restaurant filing for bankruptcy during the pandemic. The company filed for bankruptcy on October 7th, hoping to restructure and return financially stronger. Citing being overcome by financial pressures brought on by the pandemic, Ruby Tuesday has filed for Chapter 11 bankruptcy protection and announced that 185 of its 421 restaurants that temporarily closed this year would remain closed for good. Ruby Tuesday, Inc. was founded in 1972 in Knoxville, Tennessee, dedicated to providing an exceptional casual dining experience. The chain grew in popularity through its signature burgers and endless Garden Bar and has been an international favorite for nearly 50 years. There are locations in the US, Guam, and five foreign countries.
According to a report by Business Insider, Ruby Tuesday quietly shuttered 150 restaurants during the first half of the year. In the bankruptcy filing in a Delaware court, its debt is between $100 million and $500 million. The casual dining favorite plans to use the bankruptcy filing to strengthen its business by reducing liabilities.
“This announcement does not mean ‘Goodbye, Ruby Tuesday.’ 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,” said Shawn Lederman, Ruby Tuesday’s CEO. “Our restructuring demonstrates a commitment to Ruby Tuesday’s future viability as we work to preserve thousands of team member jobs. Our guests can be assured that during the Chapter 11 process, we will continue to deliver welcoming service and provide a safe environment for guests and team members, while serving fresh, signature products that only Ruby Tuesday can offer. With this critical step in our transformation for long-term financial health – this is ‘Hello,’ to a stronger Ruby Tuesday.”
The Company intends to move through the bankruptcy process as quickly as possible. The open locations will continue to operate as usual with enhanced health and safety protocol in effect to protect patrons from coronavirus exposure. Ruby Tuesday locations have also expanded delivery operations and started selling grocery staples through Ruby’s Pantry.
Ruby Tuesday joins several other restaurants and chains that have closed locations over the past several months. Among them: Luby’s, Sizzler, and California Pizza Kitchen. Additional closures remain possible as it continues to analyze and review operations and underperforming stores.
Let vacancies with no potential be a thing of the past. Allow Retailsphere to help you identify and reach out to potential tenants, decreasing your risk of vacant storefronts. Fill your vacancy with a no-obligation demo today.