MARYVILLE, TENN. – Ruby Tuesday Inc. announced on Oct. 7 that it filed for Chapter 11 bankruptcy protection.
The company said it reached an understanding with its secured lenders to support restructuring.
However, court documents show that Shawn Lederman, chief executive officer of Ruby Tuesday, said that 185 restaurants will be closed due to the COVID-19 pandemic. The company still has 236 other company-owned and operated locations along with a number of locations owned by 10 franchisee groups.
“This announcement does not mean ‘Goodbye, Ruby Tuesday,’” Lederman said in a press 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. Our restructuring demonstrates a commitment to Ruby Tuesday’s future viability as we work to preserve thousands of team member jobs.”
The company is one of many restaurants that have struggled with revenues during the pandemic due to restrictions on indoor dining. Other recent restaurant chains to file bankruptcy include Golden Corral, Sizzler USA, California Pizza Kitchen and Chuck E. Cheese.
Ruby Tuesday said Pachulski Stang Ziehl & Jones LLP works as legal counsel, CR3 Partners, LLC, as financial advisor, FocalPoint Securities, LLC, as investment banker, and Hilco Real Estate, LLC, as lease restructuring advisor. The company operates in 45 states, the District of Columbia, 14 countries and Guam.