US-based restaurant group Ruby Tuesday has filed a voluntary Chapter 11 bankruptcy petition for restructuring.
The company closed 150 of its 450 locations this year due to the financial burden brought by the Covid-19 pandemic.
The brand noted that it entered an arrangement with its secured lenders to obtain financing support for its reorganisation activities.
The filing is expected to help the chain to strengthen its business by reducing its liabilities.
Ruby Tuesday CEO Shawn Lederman said: “This announcement does not mean ‘Goodbye, Ruby Tuesday’.
“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.
“Our restructuring demonstrates a commitment to Ruby Tuesday’s future viability as we work to preserve thousands of team member jobs.
“Our guests can be assured that during the Chapter 11 process, we will continue to deliver welcoming service and provide a safe environment for guests and team members, while serving fresh, signature products that only Ruby Tuesday can offer.
“With this critical step in our transformation for long-term financial health, this is ‘Hello’ to a stronger Ruby Tuesday.”
The company noted that it plans to move through the bankruptcy process very quickly and its restaurants will continue to run ‘business as usual’ during the reorganisation phase.