Tottered by the pandemic and suffering the same long-term difficulties as many other dining chains, Ruby Tuesday has finally filed for Chapter 11 bankruptcy protection briefly on October 7th.
The company expects to practice the debt-cutting method to fix its finances and try to survive in business, stating in a report that it had arrived at a point where a conclusion has been drawn with the lenders to support.
Shawn Lederman, CEO said that it has already closed 185 restaurants permanently due to the coronavirus pandemic. This leaves the business with 236 locations which are company-owned or operated, and an undisclosed number of places operated by ten franchisee groups.
The chief marketing officer of Ruby Tuesday, Jenifer Boyd Harmon said in an email stating that they do not plan to close any more stores in the country and said they are committed to provide and deliver the same quality and experience as before.
Many dine-in restaurants have been hit by the coronavirus pandemic, which has decreased their capacity and frightened incessantly many customers.
But Ruby Tuesday had been striving for years with intensified opposition from fast-casual companies and also decreased traffic to its mall-based places, even the growth of food delivery options.
Based in Maryville, Tennessee, the company specializes in chicken, ribs, seafood, steaks, garden bar and appetizers. It has about 7,300 employees, which also includes 7,000 who have been temporarily furloughed.
Shawn Lederman announced that this is not a goodbye from Ruby Tuesday. Instead, this allows the company to reposition its long-term stability and will give an opportunity to recover from the unprecedented impact of the pandemic.
Ruby Tuesday outlines its origins back to its establishment in Knoxville, Tennessee, in 1972 near the University of Tennessee.
In 2017, with about 541 restaurants, the company went private in a sale to private-equity firm NRD Capital Management.