Hobbled by the pandemic and facing the same long-term challenges as other casual dining chains, Ruby Tuesday filed for Chapter 11 bankruptcy protection early Wednesday.
The company hopes to use the debt-cutting process to improve its finances and stay in business, saying in a statement that it had “reached an understanding with its secured lenders to support its restructuring.”
But CEO Shawn Lederman said in a court filing the company has permanently closed 185 restaurants that had shut their doors during the coronavirus pandemic. That leaves the chain with 236 company-owned and operated locations, as well as an undisclosed number of locations run by 10 franchisee groups.
“We do not anticipate any additional restaurant closures at this time,” Ruby Tuesday chief marketing officer Jenifer Boyd Harmon said in an emailed statement. “We remain committed to providing our guests with safe, quality experiences at all our current locations.”
The move comes as sit-down restaurants have been battered by the pandemic, which has reduced their seating capacity and scared away many patrons.
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Source: USA Today