Goodbye, Ruby Tuesday - Anders Bylund (Fool.com)

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Goodbye, Ruby Tuesday
Apr 04, 2008 02:30 PM UTC

Anders Bylund (Fool.com)

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4/2 - "Management says that the rebranding process is complete, but that the sales improvement they were hoping for in return hasn't materialized. The culprit is, of course, the weak economic environment and its effect on consumers' dining habits.

It's also never a good sign when a company has to sit down with its credit providers to ask for waivers to the default covenants on the existing credit facilities. Yep, Ruby Tuesday recently did just that, and suspended its store opening program until entirely new loans or lines of credit can be established with less stringent performance requirements.

Lose your dreams and you could lose your mind. Ruby Tuesday still seems unable to chase down her dreams of moderately upscale dining mastery, so I'll have to side with the skeptics on this one."

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