Ruby Tuesday Files For Bankruptcy, Closing 185 Restaurants

Ruby Tuesday has filed for bankruptcy.

On Wednesday (October 7), the casual dining chain, which debuted in 1972, announced its decision to file for Chapter 11 bankruptcy protection due to financial strains resulting from the ongoing COVID-19 pandemic.

According to CNN Business, the company made the move in an effort to decrease its debt and operating after the restaurant’s business dropped earlier this year in the wake of nationwide orders prompting restaurants to temporarily close their dining rooms, causing some of Ruby Tuesday’s locations to close its doors for good.

"This announcement does not mean 'Goodbye, Ruby Tuesday,'" CEO Shawn Lederman told the outlet in a statement. “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."

What's more, a court filing reveals the company will reportedly be eliminating 185 restaurants that were forced to shut their doors during the pandemic, leaving Ruby Tuesday with 236 company-owned and operated locations.

Of course, Ruby Tuesday isn’t alone in the financial hit brought on by COVID-19. Several other popular eateries — including Chuck E. Cheese, Sizzler USA, and Vapiano — have also filed for bankruptcy in recent months.

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