The restaurant buffet industry was dealt a major blow this week as two notable chains delivered disappointing news.
What Happened To Ruby Tuesday: Ruby Tuesday, best known for its all-you-can-eat salad bar, said in a Wednesday press release that it has voluntarily filed for Chapter 11 bankruptcy protection.
The company attributed its financial hardships directly to the "unprecedented impact of COVID-19."
Despite a Chapter 11 filing, Ruby Tuesday will continue operating as usual — for the time being at least. Prior to the announcement, the company said it was able to reach an agreement with lenders that offers a "sustainable path forward for the restaurant chain."
Ruby Tuesday will use the bankruptcy to "strengthen our business by reducing liabilities and reposition the company to emerge a stronger organization built for the future," according to the company.
Ruby Tuesday was acquired by private equity firm NRD Capital in late 2017 for $2.40 per share.
What Happened To Golden Corral: Golden Corral's largest franchise operator, 1069 Restaurant Group, filed for Chapter 11 bankruptcy protection after total debts rose to nearly $50 million.
Based in Florida, 1069 and its entities controlled roughly 33 Golden Corral locations in Florida and Georgia.
The chain was forced to close its dine-in halls to customers amid the COVID-19 pandemic. In recent months, a few locations have since reopened with varying degrees of success.
One location in Georgia even reported higher year-over-year sales in the first weekend in October, Scott Shuker, a corporate restructuring expert hired by 1069, told the Orlando Business Journal.
Bankruptcy proceedings are expected to begin on Wednesday, and the company hopes to reopen all but six of its locations by the first week of December, Shuker also told the publication.
Photo by Mike Mozart via Wikimedia.