MARYVILLE (WATE) – Ruby Tuesday announced Thursday it is selling its Maryville headquarters building to Knoxville-based clothing company Altar’d State.
Ruby Tuesday is selling its 40,000 square foot Church Avenue building for $2.8 million with the completion of the transaction scheduled for October. Ruby Tuesday also plans to consolidate its restaurant support center at its property at 333 E. Broadway Avenue by the end of January 2017.
Ruby Tuesday said in a statement the sale and consolidation will result in 19 Ruby Tuesday employees being laid off.
“We have made the difficult decision to reduce the size of our Support Center team by 19 in connection with the previously announced closure of 95 corporate owned restaurants. Impacted employees will be offered severance and benefits in accordance with our company policy. While it is never easy making these decisions, it is important that we take this step to help better position Ruby Tuesday for a strong future. We appreciate the dedication and passion of each of our team members to Ruby Tuesday.”
The restaurant chain closed 95 restaurants over the summer, including some in East Tennessee, and its CEO resigned. The company has been facing significantly dropping revenues.
Previous story: Ruby Tuesday CEO steps down, revenue continues decline
Altar’d State said in a press release it plans to move into the Church Avenue building in early 2017 after nearly seven years in its current location in Knoxville. The company began in 2009, growing from just 13 employees to more than 1,400, serving 22 states.
“Knoxville has been Altar’d State’s home base since the first store opened nearly seven years ago, but when faced with our long-term growth plans we had to identify a space that would allow us the flexibility and freedom to evolve our brand over time,” said Aaron Walters, Chairman and CEO of Altar’d State.