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The chain operates in the local market through a Vantrust Capital Private Equity fund.
Casual restaurant chain Ruby Tuesday announced Wednesday that it has filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Law, in an attempt to reduce debt and recover from the drop in customer visits due to the coronavirus pandemic.
In a filing with the US Bankruptcy Court for the District of Delaware, the company listed both assets and liabilities in the range of between $ 100 million and $ 500 million.
Ruby Tuesday said she has reached an understanding with her lenders to support the restructuring, during which her restaurants will continue to operate, while working to preserve the jobs of thousands of her employees.
“This announcement does not mean ‘Goodbye, Ruby Tuesday,'” CEO Shawn Lederman said in a statement. “Today’s actions will provide us with an opportunity to reposition the company for long-term stability, while we recover from the unprecedented impact of Covid-19.”
Social distancing and other restrictions related to the pandemic have put pressure on the restaurant industry, pushing companies like CEC Entertainment – the parent company of the popular children’s-themed restaurant chain Chuck E. Cheese – and California Pizza Kitchen to come forward. in bankrupt.
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Founded nearly half a century ago, Ruby Tuesday was publicly traded until 2017, when it was sold to private equity firm NRD Capital.
In recent years, it has struggled amid declining customer visits across the industry, particularly at full-service restaurants.
It closed at least 118 stores from 2017 to 2019 and the chain’s sales in the US – its main market – fell 13% to $ 721 million in 2018, according to research and consulting firm Technomic Inc.
In Chile
The chain operates in Chile through a Vantrust Capital Private Equity fund, which had the license in three locations: Los Domínicos, La Reina and the Airport. In addition, for this year a new enclosure was projected in the expansion of the airport enclosure.
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