The restaurant chain Ruby Tuesday filed a petition for reorganization under Chapter 11 of the Bankruptcy Code Wednesday.
Ruby Tuesday has Connecticut restaurants in Meriden at the Meriden Mall, and in Cromwell, Windsor Locks and Lisbon, according to its website.
The company indicated it expects day-to-day operations to continue uninterrupted, and it hopes to move through the Chapter 11 process quickly.
The chain offers an array of seafood, steak, chicken and pasta meals and desserts in a casual dining atmosphere. Like most restaurants, it has been negatively impacted by the COVID-19 pandemic. Under Connecticut’s Phase 3 reopening plan, restaurants are being allowed as of Thursday to have indoor dining at 75% capacity.
Shawn Lederman, Ruby Tuesday’s CEO, stressed that this petition means a restructuring of the company only.
“This announcement does not mean ‘Goodbye, Ruby Tuesday,’” Lederman said. “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.”
According to Lederman, the chain is committed to the chain’s future viability and the preservation of thousands of employee jobs.
“Our guests can be assured that during the Chapter 11 process, we will continue to deliver welcoming service and provide a safe environment,” Lederman said in a press release. “With this critical step in our transformation for long-term financial health – this is ‘Hello’ to a stronger Ruby Tuesday.”
Jenifer Boyd Harmon, chief marketing officer for Ruby Tuesday, said via email Wednesday, “We do not anticipate any additional restaurant closures at this time. We remain committed to providing our guests with safe, quality experiences at all our current locations.”
According to the company, it aims to use this filing to reduce debt and liability. Much of the company’s debt is related to rent, documents show. The petition was filed in U.S. Bankruptcy Court for the District of Delaware.
The company said it reached an understanding with its secured lenders before the filing to support its restructuring through financing.
Founded in 1972 in Knoxville, Tenn., the chain has restaurants around the country and world.
Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.
