Ruby Tuesday files Chapter 11 bankruptcy, cites impact of Covid-19

By Sarah Lizee

Olympia, Wash., Oct. 7 – RTI Holding Co., LLC (Ruby Tuesday) and 50 of its affiliates each filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware on Wednesday, according to a press release.

The company said that prior to the filing, it had reached an understanding with its secured lenders to support its restructuring through financing and an agreement regarding the terms of a plan that will provide a sustainable path forward for the restaurant chain.

The company’s restaurants will continue to operate throughout the reorganization process, the company 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,” Shawn Lederman, Ruby Tuesday’s chief executive officer, said in the release.

According to court documents, Ruby Tuesday has $100 million to $500 million in both assets and liabilities.

The company’s largest unsecured creditors are National Retail Properties, LP based in Orlando, Fla., with an $11.58 million rent claim, ZionsBancorporation, NA, doing business as California Bank & Trust, based in Sacramento, with a $10 million PPP loan claim, Quadre Investments LP based in Duluth, Ga., with an $8.4 million litigation – damages arising from purchase/sale of security claim, Times Square Tower Associates LLC based in New York, with a $4.33 million rent claim, Marguerite Duffy with a $3.44 million pensioner claim – executive nonqualified “top hat” plan benefit claim, Robert LeBoeuf with a $3.27 million pensioner claim – executive nonqualified “top hat” plan benefit claim, and Interstate Augusta Properties LLC based in Chestnut Hill, Mass., with a $2.9 million rent claim.

Ruby Tuesday is advised by Pachulski Stang Ziehl & Jones LLP as legal counsel, CR3 Partners, LLC, as financial adviser, FocalPoint Securities, LLC, as investment banker, and Hilco Real Estate, LLC, as lease restructuring adviser.

Ruby Tuesday is a Knoxville, Tenn.-based foodservice retailer. The Chapter 11 case number is 20-12456.

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