July 8, 2019 / 9:38 PM / in 10 days

RUI restaurant company files for Ch. 11, blames minimum-wage hikes

Restaurant operator RUI Holding Corp filed for bankruptcy protection on Sunday after struggling with increased labor costs following mandated minimum-wage hikes, most notably in its Seattle home market, and consumers shifting away from casual dining.

In papers filed in U.S. Bankruptcy Court in Delaware, RUI said it plans to sell itself while in Chapter 11 bankruptcy after an unsuccessful three-year search for a buyer and mounting financial strain left it unable since January to make payments on roughly $37 million in debt owed to lenders Drawbridge Special Opportunities Fund LP and NXT Capital LLC.

To read the full story on WestlawNext Practitioner Insights, click here: bit.ly/2S3cJCy

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