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Actionable news in RT: RUBY TUESDAY Inc,

Ruby: Press Release Dated 11.05.15

The following excerpt is from the company's SEC filing.


Ruby Tuesday Inc. Announces Strategic Plan for Lime Fresh Mexican Grill Brand

Enters Agreement to Sell Eight Corporate-owned Locations; Will Close 11 Remaining Corporate-owned Restaurants and Focus on Brand Franchising

MARYVILLE, TN – November 5, 2015

- (BUSINESSWIRE) – Ruby Tuesday, Inc. (NYSE: RT) today announced that it has entered into an agreement with Rubio’s Restaurants, Inc. to sell eight corporate-owned Lime Fresh Mexican Grill locations in Florida for approximately $6.3 million. In addition, the Company will close its 11 remaining corporate-owned Lime Fresh Mexican Grill restaurants immediately and maintain its eight franchised locations. All 19 corporate-owned restaurants are leased locations.

The completion of the transaction is targeted for January of 2016 subject to customary closing conditions. Ruby Tuesday will operate the eight locations being sold as Lime Fresh Mexican Grills until the transaction closes, enabling a smooth transition and opportunities for its employees. The Company will provide additional information when it releases second fiscal quarter 2016 earnings on January 7, 2016.

Ruby Tuesday acquired Lime Fresh Mexican Grill in April of 2012. The purchase agreement included the brand’s intellectual property rights and the assets of seven company-owned restaurants as well as the royalties from five franchised restaurants.

JJ Buettgen, Chairman of the Board, President, and CEO, commented, "As we consider Ruby Tuesday’s future, we believe it is in our shareholders’ best interest that we exclusively operate our namesake brand restaurants. We are therefore selling eight corporate-operated Lime Fresh restaurants to Rubio’s Restaurants...