Casual dining chain Ruby Tuesday filed for chapter 11 bankruptcy protection on October 9, 2020, due to the unprecedented impact of COVID-19 which has caused over 200,000 deaths in America. Ruby Tuesday is joining other restaurant chains struggling during the coronavirus pandemic such as Sweet Tomatoes, Logan's Roadhouse, Chuck e. Cheese, IHOP, California Pizza Kitchen, Sizzler, and NPC International which owns a number of Wendy's and Pizza Hut locations. The reason for their bankruptcy filing is to cut debt and recover from a drop in customers. According to the court documents, the company owes lenders between $100 million and $500 million.
Ruby Tuesday Files for Bankruptcy
"This announcement does not mean 'Goodbye, Ruby Tuesday,' CEO Shawn Lederman said in a 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."
According to NJ.com, the chain shut down 185 locations throughout 2020 and does not have plans to reopen them. It is not clear whether these Ruby Tuesday restaurants were shut down due to the pandemic. The fast-casual chain shut down dining rooms during the beginning of the pandemic to slow the spread of the virus. Although they still offered take-out, business slowed. Their salad bar was shut down as well to prevent cross-contamination.
What is Ruby Tuesday?
Named after the Rolling Stone's tune, Ruby Tuesday, the first Ruby Tuesday's location popped up in Knoxville, Tennessee in 1972 after founder Sandy Beall and his University of Tennessee fraternity brothers pulled together $20,000.
The American cuisine menu features its signature salad bar and burgers along with pretzel sticks, steak, and baby back ribs. The restaurant also offers a full bar that serves cocktails, wine, and beer.
Ruby Tuesday shared it has reached an understanding with its lenders to support the restructuring, while it works to preserve the jobs of thousands of its employees, according to CNBC.