Last summer, Ruby Tuesday revealed plans to close nearly 100 underperforming stores as part of the chain’s “Fresh Start Initiative” that aimed to turn around slumping sales. Those efforts apparently haven’t been as successful as the restaurant brand would have liked, and now it’s looking to sell itself instead.
Ruby Tuesday announced Monday that it is exploring strategic alternatives in an attempt to “maximize shareholder value and position the business for long-term success.”
The company, which now operates 613 restaurants around the country, says it is in the beginning stages of the strategic and financial review and plans to explore all options, including a sale of assets or a merger.
“We believe now is the right time to explore strategic alternatives that have the potential to position the business for long-term success and to carry that legacy forward,” Stephen Sadove, non-executive chair at Ruby Tuesday, said in a statement.
The restaurant chain has retained UBS as its financial advisor for the process.
In addition to announcing plans to look at strategic alternatives, Ruby Tuesday on Monday also revealed its preliminary unaudited financial results for the third quarter, which ended Feb. 28.
During that period, same restaurant sales declined 4%. That loss is on top of declines the company reported in August when revenue declined 5.9% during the 2016 fiscal year, with same-store sales declining 3.7% over the previous year.