American restaurant chain Ruby Tuesday filed for bankruptcy Wednesday amid restaurant closures and low sales.
The restaurant company said it will focus on “reducing liabilities and emerge a stronger organization built for the future" with its Chapter 11 filing.
“This announcement does not mean ‘Goodbye, Ruby Tuesday,’” 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.”
“Our restructuring demonstrates a commitment to Ruby Tuesday’s future viability as we work to preserve thousands of team member jobs," Lederman added. "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.”
Coronavirus-related effects pushed many Ruby Tuesday locations to close as dining-in became an impossible or less desirable activity for consumers across the states. More than 150 Ruby Tuesday restaurants closed permanently.
Even before COVID-19, Ruby Tuesday was struggling, as consumer interest in casual dining has steadily declined. As of May, the restaurant chain operated less than 300 restaurants. In 2010, the company operated or franchised 840 locations, Restaurant Business reported.