Ruby Tuesday, the Maryville, Tennessee-headquartered American multinational restaurant chain, had filed for Chapter 11 bankruptcy protection on Wednesday, marking up the latest in a string of fatalities stemmed from the pandemic driven downturn in traffic, forced business closures and a changing consumers’ behaviour.
Nonetheless, the 48-year old restaurant company having had holdings at 300 locations across the globe to date, said in a statement on Wednesday that its restaurants would remain open during the bankruptcy process. As beforementioned, Ruby Tuesday has around 300 company-owned and franchised restaurants in the US, Canada alongside nine other countries such as Hong Kong, Chile and Kuwait.
Ruby Tuesday bankruptcy doesn’t mean goodbye, says CEO Lederman
In point of fact, while a global-scale pandemic outbreak had been forcing tens of millions of people to heavily rely on online deliveries, a number of sit-down restaurants including the Los Angeles-based California Pizza Kitchen had filed for bankruptcy in July this year and a swathe of sit-down restaurants, which had been struggling even before the onset of pandemic amid a strident rise in online deliveries, had been on the brink of bankruptcies, suggested analysts.
Nonetheless, Ruby Tuesday, which has been the latest in a series of bankruptcies of wide-ranging brick-and-mortar consumer shops including sit-down restaurants, had yet to reveal any kind of proposal on how the company would raise a so-called debtor-in-possession financing, an amount that allows a bankrupted firm to keep operating during the restructuring process.
Nevertheless, voicing a vociferous tone that expressed optimisms of a quick revamp of Maryville’s Ruby Tuesday that had succumbed into long-term debts and sought for court protections from its stakeholders on Wednesday, the Company Chief Executive Lederman said in a statement earlier in the day, “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. ”