Ruby Tuesday files for bankruptcy, shutters 185 restaurants
Casual dining chain Ruby Tuesday has filed for Chapter 11 bankruptcy protection and announced that 185 of its 421 restaurants that temporarily closed this year will stay closed for good.
According to the bankruptcy filing in a Delaware court, the company’s debt is between $100 million and $500 million.
“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," CEO Shawn Lederman said in a statement earlier this week.
The following seven Ruby Tuesday restaurant locations in New Jersey have closed this year:
Deptford: Deptford Clements Bridge Rd.
Freehold: Freehold Raceway Mall
Hamilton: 500 Marketplace Blvd.
Lakewood: 1875 Route 70.
Mays Landing: 4403 Black Horse Pike
Neptune: 3595 State Route 66.
Phillipsburg: 1278 Route 22
It’s unclear whether any of the seven closures were directly related to the pandemic. According to a report by Business Insider, Ruby Tuesday quietly shuttered 150 restaurants during the first half of the year.
CNN also reported the company had financial problems even before the pandemic hit.
That leaves just five Ruby Tuesday spots left in New Jersey, according to the company’s website. They are located in Eatontown, Elizabeth, Somerset, Toms River and inside Newark Liberty International Airport.
A Ruby Tuesday spokeswoman told NJ Advance Media the company does not anticipate additional closures.
“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,” Lederman, the CEO, said in the statement. “We intend to move through the process as quickly as possible.”
Ruby Tuesday joins a number of other restaurants and chains that have closed locations over the past several months. Among them: Burger King, Smashburger, Zinburger and Cheeseburger in Paradise.
Ruby Tuesday was founded in 1972 in Knoxville, Tennessee.
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