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Ruby Tuesday files for bankruptcy as it strives to recover from COVID-19 impact

Ruby Tuesday files for bankruptcy as it strives to recover from COVID-19 impact
Posted at 7:17 AM, Oct 07, 2020
and last updated 2020-10-07 10:18:35-04

MARYVILLE, Tenn. – Ruby Tuesday has filed for Chapter 11 bankruptcy protection.

The casual dining chain says it's pursuing a comprehensive financial and operational restructuring aimed at reducing the company’s current debt and enhancing operations to continue to serve guests in the future.

In a statement, Ruby Tuesday CEO Shawn Lederman said the restructuring will allow the business to reposition for long-term stability as it recovers from the unprecedented impact of COVID-19.

The restaurant says it will continue serving guests as usual, with increased distancing, cleaning and sanitization protocols in place to ensure safety and peace of mind in response to the COVID-19 pandemic.

“This announcement does not mean ‘Goodbye, Ruby Tuesday,’” wrote Lederman.

The company also notes that Ruby Tuesday gift cards and “So Connected Rewards” will continue to be valid and retain their value through the bankruptcy process.

“Our restructuring demonstrates a commitment to Ruby Tuesday’s future viability as we work to preserve thousands of team member jobs,” Lederman continued in his statement. “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.”

Though a timeline for the bankruptcy was not provided, the company says it intends to move through the process as quickly as possible.