Casual dining chain Ruby Tuesday filed for bankruptcy protection on Wednesday, making it the latest food chain struggling to cope up due to the coronavirus pandemic.
While doing so, Ruby Tuesday hopes to lower its liabilities as well as place itself for long-standing sustainability.
Before seeking relief through bankruptcy court, the chain revealed it had lenders for supporting its restructuring procedure. While it reorganizes, the company plans to keep all its restaurants operational as it works to safeguard the jobs of its team members.
In a statement, Shawn Lederman, CEO, Ruby Tuesday said that this announcement about bankruptcy doesn’t mean a goodbye for the company. Instead, the actions would let the company reposition itself for long-standing stability as it recovers from the dreadful coronavirus impact.
Prior to the onset of the coronavirus pandemic; however, Ruby Tuesday had been facing a lot of hardships for years because of unexpected stock performance, rocky leadership and lackluster sales, as per several reports.
Since the beginning of this year, the chain had already started quietly shuttering its restaurants.
Though the pandemic has increased restaurant closures, Aziz Hashim, founder and managing partner of Ruby Tuesday owner NRD Capital noted that the closures were kind of expected because of lackluster sales.