Ruby Tuesday Files for Bankruptcy, Permanently Closes 185 Restaurants amid Coronavirus Pandemic
The restaurant chain's CEO says the move allows for "an opportunity to reposition the company for long-term stability"
Ruby Tuesday filed for Chapter 11 bankruptcy on Wednesday, becoming the latest restaurant to be pummeled financially due to the coronavirus pandemic.
According to the filing, the Tennessee-based restaurant chain, founded in 1972, hopes to reduce its debt in order to improve its finances and stay in business.
"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."
Lederman said in the filing that 185 restaurants that closed earlier on in the pandemic will not reopen, NPR reported. 236 restaurants are still open, but with COVID-related restrictions, such as seating capacity.
"We do not anticipate any additional restaurant closures at this time," Ruby Tuesday chief marketing officer Jenifer Boyd Harmon said in statement to USA Today. "We remain committed to providing our guests with safe, quality experiences at all our current locations."
Ruby Tuesday is among many restaurants to file for bankruptcy this year because of COVID-19.
Last month, California-based steakhouse chain Sizzler announced it was filing for Chapter 11 bankruptcy. On July 30, casual dining chain California Pizza Kitchen announced the same filing in the U.S. Bankruptcy Court for the Southern District of Texas.
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