Ruby Tuesday Files for Chapter 11 Bankruptcy Protection, Citing COVID-19 Impact
One popular restaurant chain is filing for bankruptcy due to the pandemic.
Ruby Tuesday has announced that it filed for Chapter 11 bankruptcy this week due to the “the unprecedented impact of COVID-19” on the restaurant industry. The filing revealed that the chain does not plan to reopen 185 of its restaurants that were closed during the pandemic.
The company clarified in a written statement that this does not mean that the restaurant will be closing all of its locations. Ruby Tuesday further explained that it filed for bankruptcy for the fiscal health of the brand moving forward.
Ruby Tuesday’s CEO Shawn Lederman said that this announcement is not a “goodbye” to Ruby Tuesday, but rather a “hello” to a stronger Ruby Tuesday. In a letter posted to the restaurant’s website, he went on to say,
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. 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.
At this point in time, the Ruby Tuesday restaurants that are still operating will remain open for business as usual including dining rooms, Ruby TueGo, curbside pickup, catering, and delivery. Ruby Tuesday gift cards and So Connected Rewards will continue to be valid and retain their value.