New York (CNN Business)Casual dining chain Ruby Tuesday has filed for bankruptcy, overcome by the financial pressures brought on by the pandemic.
The nearly 50-year-old company filed for Chapter 11 bankruptcy protection Wednesday, with the intention of reducing its debt and operating as usual while it navigates the process. Like others, Ruby Tuesday’s business declined more this year because of the temporary closure of its dining rooms that forced some locations to permanently close.”This announcement does not mean ‘Goodbye, Ruby Tuesday,'” said CEO Shawn Lederman 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.”
Ruby Tuesday locations will continue to operate normally during bankruptcy.Ruby Tuesday was struggling before Covid-19. The privately held chain has closed roughly 200 locations within the past few years, with about 300 remaining globally. It’s unclear if more locations will close. Restrictions on indoor dining and the tough economics on making money from delivery or take out have forced a number of chains to file for bankruptcy, including Sizzler USA, California Pizza Kitchen, Chuck E. Cheese and Vapiano. Read MoreRuby Tuesday, like the Olive Garden, also has a flagship location in New York’s Times Square. A search on its website shows it no longer being open.
Source: edition.cnn.com
