MARYVILLE, TENN. – Casual dining restaurant chain Ruby Tuesday emerged from Chapter 11 bankruptcy protection after a federal judge in Delaware judge confirmed the chain’s Chapter 11 plan of reorganization on Feb. 17.
The chain was among many restaurants that struggled to remain profitable during the global pandemic due to mandatory foodservice closures and restrictions on indoor dining. Other recent restaurant chains to file bankruptcy include Golden Corral, Sizzler USA, California Pizza Kitchen and Chuck E. Cheese.
The bankruptcy enabled Ruby Tuesday to strengthen its core business of 209 company owned and operated locations by shedding liabilities including leases from closed locations, the company said. Looking forward, Ruby Tuesday will continue to develop virtual “delivery-only” brands to capitalize on its core strengths and increased off-premises business as part of a long-term growth plan.
“Ruby Tuesday is a healthier company now and is positioned to be more efficient, competitive and stable for the future,” said Shawn Lederman, chief executive officer of Ruby Tuesday. “We want to thank our employees, partners and creditors for helping to ensure our plan of reorganization was successful and we look forward to continuing quality service for our guests and communities for many years to come.”