CLEVELAND, Ohio – Ruby Tuesday filed for Chapter 11 bankruptcy protection this week, but the casual restaurant chain swears it’s not a goodbye.
The court-supervised restructuring will allow the company to achieve “long-term stability” amid the “unprecedented impact of COVID-19,” Ruby Tuesday CEO Shawn Lederman said in a statement. hurry.
In court documents, the chain, famous for its generous salad bar, claims to have been particularly affected by the cessation of the coronavirus because more than 90% of its activity comes from restaurant catering. Ruby Tuesday has since been able to reopen 236 restaurants, but the company will permanently close all 185 restaurants, including locations in Medina and Seven Hills, which have remained closed since the pandemic began in March.
During the bankruptcy process, Ruby Tuesday restaurants in Elyria, Streetsboro and across the country will continue to operate as usual with enhanced health and safety protocols in place. The company also expanded its delivery business, launched ghost kitchens, and started selling basic groceries through Ruby’s Pantry.
Nonetheless, the company admits that further closures remain possible as it continues to analyze and review its operations and identify underperforming stores.
“Our guests can rest assured that during the Chapter 11 process, we will continue to provide welcoming service and a safe environment for guests and team members, while serving up fresh and signature produce that only Ruby Tuesday can. offer, ”says Lederman. “With this crucial step in our transformation to long-term financial health – it’s ‘Hello’, towards a stronger Ruby Tuesday.”