Citing the "unprecedented impact" of COVID-19, casual dining chain Ruby Tuesday has filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code.
“...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, in a statement. “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...”
The brand has permanently closed 185 restaurants that had shut their doors during the coronavirus pandemic, leaving the chain with 236 company-owned and operated locations, as well as an undisclosed number of locations run by 10 franchisee groups, reports USA Today.
Prior to its filing, the company reached an understanding with its secured lenders to support its restructuring through financing and an agreement that will provide "a sustainable path forward" for the restaurant chain. The company intends to move through the bankruptcy process as quickly as possible and is reducing its liabilities. Restaurants will continue to operate “business as usual” throughout the reorganization process.
Additional information about the reorganization can be found at https://dm.epiq11.com/RubyTuesday.