It’s Not Goodbye, But Not Good Either: Ruby Tuesday Declares Bankruptcy

Far this year, a number of casual sit-down dining establishments have looked for bankruptcy security, including the moms and dad company of family-oriented Chuck E. Cheese, steakhouse chain Sizzler and California Pizza Kitchen. The largest U.S. franchisees of Pizza Hut and Golden Corral have actually also declared bankruptcy.

Chairs are stacked outside a closed Ruby Tuesday restaurant at Orlando Intercontinental Airport on May 24, 2020.

“This announcement does not indicate Goodbye, Ruby Tuesday however Hello, to a stronger Ruby Tuesday,” Lederman said in a declaration announcing the insolvency, riffing off the lyrics of a Rolling Stones tune that predates the restaurants starting in 1972.

Ruby Tuesdays financial obligation is in between $100 million and $500 million, according to its filings in a Delaware insolvency court. Earlier this year, Ruby Tuesday ended up being one of the corporations that dealt with reaction after receiving $10 million in federal loans through the Paycheck Protection Program, billed as pandemic support for having a hard time small companies.

David J. Phillip/AP

The Tennessee-based casual chain is signing up with lots of others having a hard time to stay relevant versus a growing roster of fast-food and fast-casual rivals, lastly pushed into bankruptcy by the loss of service during the pandemic. Ledermans court filing likewise mentioned decreasing shopping mall traffic and the growing appeal of meal kits, grocery and food delivery.

The company applied for personal bankruptcy security on Wednesday, wanting to restructure and emerge economically stronger. Ruby Tuesday CEO Shawn Lederman informed the court that the chain does “not mean to reopen 185 of their dining establishments that were closed during the pandemic.”

Ruby Tuesday is the most current food chain to crumble under the pressure of the coronavirus pandemic.

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Chairs are stacked outside a closed Ruby Tuesday dining establishment at Orlando Intercontinental Airport on May 24, 2020.

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NPRs Avie Schneider contributed to this report.

David J. Phillip/AP

“The practically total elimination of in-store dining, which historically has represented over 90% of the Companys overall sales, struck at the heart of the Companys service design,” he wrote in a court filing.

David J. Phillip/AP

Lederman stated the business currently has 236 open dining-room, though with seating and other limitations. A spokesperson told NPR the company did not anticipate any extra closures.