Ruby Tuesday restaurant chain files Chapter 11 bankruptcy, says pandemic ‘eviscerated’ business

It may not be “Goodbye Ruby Tuesday,” but it’s still unsavory news.

Restaurant chain Ruby Tuesday filed for Chapter 11 bankruptcy Wednesday, saying the coronavirus pandemic has “eviscerated” its business.

The company said it plans to permanently shed 185 restaurants that closed during the pandemic.

It didn’t name the locations, but the Ruby Tuesday in Times Square and another in the Galleria Mall in Poughkeepsie no longer appear on the company’s website.

In terms of staffing, the Tennessee-based company said 7,000 of its roughly 7,300 employees had to be furloughed due to pandemic-related closures.

The company “hopes to invite many of these employees to return” if sales eventually rebound, CEO Shawn Lederman said in a filing.

“The lack of predictability in the spread of the virus coupled with the necessary responses of governments to try and limit exposure by preventing gatherings has eviscerated the restaurant industry,” Lederman said.

“The almost complete elimination of in-store dining, which historically has represented over 90% of the company’s total sales, struck at the heart of the company’s business model,” he said.

Known for its signature baby back ribs and name derived from a Rolling Stones song, the company already has negotiated financing for its restructuring and believes it has a “sustainable path forward,” Lederman said.

“We plan to use this filing to strengthen our business by reducing liabilities and reposition the company to emerge a stronger organization built for the future. We intend to move through the process as quickly as possible,” he said in a letter posted online.

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