Ruby Tuesday announced Wednesday that it has filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code.
Prior to its filing, the company reached an understanding with its secured lenders to support its restructuring through financing and an agreement regarding the terms of a plan that will provide a sustainable path forward for the restaurant chain.
The casual dining favorite plans to use this filing to strengthen its business by reducing liabilities and emerge a stronger organization built for the future. The Company intends to move through the bankruptcy process as quickly as possible. Its restaurants will continue to operate "business as usual" throughout the reorganization process.
"This announcement does not mean 'Goodbye, Ruby Tuesday'. 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," said Shawn Lederman, Ruby Tuesday's CEO. "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, while serving fresh, signature products that only Ruby Tuesday can offer. With this critical step in our transformation for long-term financial health - this is 'Hello', to a stronger Ruby Tuesday."
Read the full presser on the restaurant's website.
Ruby Tuesday, hit by COVID-19 closures, files for bankruptcy