Ruby Tuesday said it has filed for bankruptcy as the casual dining restaurant chain struggles to recover from the "unprecedented impact" of the coronavirus pandemic.
The Maryville, Tenn.-based company said in a statement that it plans to use the Chapter 11 filing to strengthen its business by reducing liabilities "and emerge a stronger organization built for the future."
Prior to the filing, Ruby Tuesday said that "it had reached an understanding with its secured lenders to support its restructuring through financing and an agreement regarding the terms of a plan that will provide a sustainable path forward."
"This announcement does not mean ‘Goodbye, Ruby Tuesday’. 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,” said Shawn Lederman, CEO of Ruby Tuesday.
Ruby Tuesday, which has about 300 locations and 32,100 employees, said it intends to move through the bankruptcy process as quickly as possible.
The coronavirus pandemic has sparked a wave of bankruptcies as businesses have been forced to shut down or cut back to comply with social distancing requirements.
The list of businesses filing for bankruptcy includes Steakhouse owner Sizzler USA, Century 21, Town Sports International (CLUB) - Get Report, owner of New York Sports Clubs, and California Pizza Kitchen.
Ruby Tuesday said it was being advised by Pachulski Stang Ziehl & Jones LLP as legal counsel, CR3 Partners, LLC, as financial advisor, FocalPoint Securities, LLC, as investment banker, and Hilco Real Estate, LLC, as lease restructuring advisor.