MARYVILLE, TENN. — Ruby Tuesday Inc. has filed for Chapter 11 bankruptcy protection with plans to permanently close 185 restaurants that were shuttered during the COVID-19 pandemic. The company’s 236 open locations will remain operational throughout the reorganization process. The Maryville, Tennessee-based chain is the latest restaurant group to fall victim to the economic pressures caused by the coronavirus pandemic. California Pizza Kitchen filed for Chapter 11 protection in July citing similar struggles. “This announcement does not mean ‘Goodbye, Ruby Tuesday’ — this is ‘Hello, to a stronger Ruby Tuesday’,” said CEO Shawn Lederman in a statement Wednesday, playing off the lyrics to the popular Ruby Tuesday song recorded by The Rolling Stones, which was released prior to the company’s founding in 1972. In response to the pandemic, Ruby Tuesday implemented a number of new practices including an expansion of third-party delivery and off-premise services, the introduction of a virtual kitchen initiative and the launch of ‘Ruby’s Pantry,’ an option which allows customers to purchase uncooked food, groceries and other essentials for delivery through the company’s website. With in-store dining historically representing over 90 percent of the company’s total sales, these initiatives are expected to play a part in Ruby’s Tuesday’s …
LOS ANGELES — Los Angeles-based Pacific Oak Strategic Opportunity REIT has completed its previously announced merger with Pacific Oak Strategic Opportunity REIT II in a stock-for-stock transaction, creating a combined company with more than $2 billion in gross real estate and real estate-related assets. The new company has retained the name Pacific Oak Strategic Opportunity REIT. “We believe the merger creates a stronger and more robust company, and provides significant benefits to stockholders, including improved access to capital markets and reduced operating costs,” says Keith Hall, CEO and a director of Pacific Oak Strategic Opportunity REIT. Houlihan Lokey acted as financial advisor to Pacific Oak Strategic Opportunity REIT’s special committee of the board of directors and SunTrust Robinson Humphrey acted as financial advisor to Pacific Oak Strategic Opportunity REIT II’s special committee of board of directors. Morrison & Foerster LLP, Rogers & Hardin LLP and DLA Piper LLP (US) served as legal counsel in the transaction.
KNOXVILLE, TENN. — Regal Cinemas will temporarily suspend operations at all of its 536 U.S. theaters beginning Thursday, Oct. 8. British owner-operator Cineworld (LON: CINE) owns Knoxville, Tenn.-based Regal Cinemas, which has about 7,000 screens across its U.S. portfolio of theaters. Cineworld also announced plans to close all of its theaters in the United Kingdom this week. The closures will impact about 40,000 employees, according to Cineworld. “This is not a decision we made lightly, and we did everything in our power to support a safe and sustainable reopening in the United States,” says Mooky Greidinger, CEO of Cineworld. “From putting in place robust health and safety measures at our theaters to joining our industry in making a collective commitment to the CinemaSafe protocols to reaching out to state and local officials to educate them on these initiatives, we are grateful for and proud of the hard work our employees put in to adapt our theaters to the new protocols,” he adds. While theaters in several major markets, most notably New York City, remain closed, many large cities have permitted theaters to reopen at limited capacities in recent weeks. Venues located in Manhattan’s famous Broadway District that showcase plays also …
BURBANK, CALIF. — The Walt Disney Co. (NYSE: DIS) will lay off 28,000 employees who were previously furloughed due to the coronavirus pandemic, according to multiple media reports. Disney World in Orlando, Fla., and Disneyland in Anaheim, Calif., both closed in mid-March due to the COVID-19 outbreak. Disney’s chief financial officer Christine McCarthy said in May that for every two weeks the parks were closed, the company lost $500 million. Disney World reopened in July with limited capacity, but Disneyland remains closed under California guidelines. A timeline for reopening has not been established. Disney chairman Josh D’Amaro sent a letter to employees Tuesday, Sept. 29 notifying workers of the impending layoffs. The letter does not disclose how many layoffs the company expects to make, but he says in the letter that layoffs will affect executive, salary and hourly roles. “Earlier this year, in response to the pandemic, we were forced to close our businesses around the world. Few of us could have imagined how significantly the pandemic would impact us — both at work and in our daily lives,” D’Amaro said in the letter. “We initially hoped that this situation would be short-lived, and that we would recover quickly and …
NEW YORK CITY — New York-based HVAC design and engineering firm Gil-Bar Industries has acquired GBS Ltd., an air conditioning contractor based in Berkeley Heights, New Jersey. As part of the deal, Metro Air Products NJ, a Gil-Bar Industries affiliate, will join the GBS Ltd. team and Gil-Bar’s New Jersey operations as a single entity that will be known as Gil-Bar Sales NJ. Former GBS principal Greg Peifer will join Gil-Bar as sales manager of a new Gil-Bar office in Philadelphia.
JERICHO, N.Y. — J.S. Held, a global consulting firm based in Jericho, New York, has acquired Examine Construction Consultants, a firm with multiple offices in Canada that provides construction services on projects throughout North America and France. J.S. Held provides a range of real estate-related services, including property damage assessment, water and fire restoration consulting, equipment consulting and forensic architecture and engineering. Examine, which also has an office in Paris, joins a team that comprises more than 1,000 consultants around the world.
ISSAQUAH, WASH. — Costco Wholesale Corp. (NASDAQ: COST) has reported a 12.5 percent increase in quarterly net sales in its fiscal fourth quarter, which ended Aug. 30. Costco’s sales jumped to $52.9 billion from $46.4 billion last year. Costco also experienced a 91 percent jump in quarterly e-commerce sales, resulting in a 50 percent increase over the previous year. The company’s net income for the fourth quarter was $1.4 billion, compared with $1.1 billion last year, even though this year’s fourth quarter was negatively impacted by $281 million in costs related to COVID-19 — such as premium wages and sanitation protocols — and a $36 million pre-tax charge due to prepayment of a $1.5 billion in debt. Costco recorded $4 billion in net income for the fiscal year, up from $3.7 billion in the prior year. The company currently operates 795 stores across the globe, as well as e-commerce sites in the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan and Australia.
NEW YORK CITY — Brandon Singer, formerly of Cushman & Wakefield, has launched Retail by MONA, a leasing and advisory firm that will serve New York City. MONA is an acronym for Making of a New Age. The company has strategic partnerships with property owners including Aby Rosen and Michael Fuchs, founders of RFR Holding. Singer will serve as CEO of the new entity, which will offer both tenant and landlord representation services. Michael Cody, also formerly with Cushman & Wakefield, will serve as director and co-founder.
ORLANDO, FLA. — Darden Restaurants Inc. (NYSE: DRI) has reported its sales fell 28.4 percent in its fiscal first quarter, which ended Aug. 30. The Orlando-based company owns restaurant brands including Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze and Eddie V’s. Darden reported that sales in its fine dining restaurants fell 38.9 percent year-over-year. Sales at Olive Garden slid 27.7 percent, while LongHorn saw a decrease of 16.3 percent. At the beginning of its first quarter, Darden had 68 percent of restaurants in its portfolio open, compared with 91 percent on Sept. 1. Despite the fall in sales, Darden is still progressing with its full-year outlook, which includes the addition of 35 to 40 new restaurants and total capital spending of $250 million to $300 million. As of Aug. 30, Darden operated 1,807 restaurants.
DALLAS — August Real Estate, a Dallas-based development firm founded by brothers and industry veterans Evan and Jordan August, has launched with two redevelopment projects in the city’s historic Deep Ellum neighborhood. The first project involves the restoration of The Continental Gin Building, which was built in 1888, into a modern office complex with the feel of a boutique hotel that will feature a 22,000-square-foot coworking space from local operator Common Desk. August is also renovating the building at 333 1st Ave., which was built in 1926 and most recently occupied by Nordstrom’s Trunk Club, to offer 36,000 square feet of office space. The projects are expected to be complete in the first and second quarters of 2021, respectively.