Ruby Tuesday filed for bankruptcy protection on Wednesday, citing the “unprecedented impact” of the coronavirus pandemic.
The casual dining chain said it would use the Chapter 11 process to cut debt and buttress its financial position. Ruby Tuesday expects to keep its restaurants open during the bankruptcy process, which it intends to emerge from “as quickly as possible.”
“This announcement does not mean ‘Goodbye, Ruby Tuesday,’” the company’s chief executive, Shawn Lederman, said in a statement. “With this critical step in our transformation for long-term financial health — this is ‘Hello’, to a stronger Ruby Tuesday.”
The pandemic has had a particularly devastating impact on the hospitality industry, including restaurants, hotels and entertainment companies. Virus restrictions forced businesses to shut down for long periods and reopen with reduced capacity, prompting a number of chains to file for bankruptcy protection, including Chuck. E Cheese, California Pizza Kitchen and NPC International, the largest franchisee of Pizza Hut in the United States.
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