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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsFacing furor, Ruth's Chris high-end steak chain returns $20 million small business loan
Facing furor, Ruth's Chris high-end steak chain returns $20 million small business loan
The restaurant chain has been under fire for accepting stimulus loans earmarked for struggling small businesses.
April 23, 2020, 4:18 PM EDT / Updated April 23, 2020, 4:21 PM EDT
By Ben Popken
Ruth's Chris Steak House will return the $20 million coronavirus small business loan it procured from the government's $350 billion Paycheck Protection Program, the company announced Thursday.
The PPP was designed to throw a financial lifeline to the millions of small businesses who have seen revenues plunge due to social distancing lockdowns but the hastily conceived program left thousands of applicants high and dry, after funds were snapped up in less than two weeks.
Ruth's Hospitality Group, which owns the Ruth's Chris Steak House brand operates more than 100 steakhouses across the United States, Canada and Mexico. It managed to secure two $10 million loans, one for each of its subsidiaries.
With fewer than 500 employees at each location, the company argued that it does meet the eligibility requirements for the loan and has had to furlough some employees.
However, the chain has been under fire for accepting stimulus loans earmarked for struggling small businesses, not multimillion-dollar corporations.
more...
https://www.nbcnews.com/business/business-news/facing-furor-ruth-s-chris-high-end-steak-chain-returns-n1190606?fbclid=IwAR3A4BQI5W6e5Lf1Uyncyz75M1h6cO0-N8pF2FoBbxWV3MX5UxTXx7xcSk4
gratuitous
(82,849 posts)And sooner or later even the greediest motherfuckers might reconsider their money grab. But it takes that at a minimum sometimes.
Dem2
(8,166 posts)It was shameful that they took that money.
Cha
(295,929 posts)dixiegrrrrl
(60,010 posts)We know him by now, very well. There is zero doubt that all of his money giveaway programs have benefited his friends and/or people he wants to make a deal with.
tblue37
(64,982 posts)Cirque du So-What
(25,812 posts)I'll still never patronize them for having accepted that money in the first place.
LisaM
(27,762 posts)I don't think it's totally wrong for larger companies to take stimulus money to pay employees. They just shouldn't get it first.
The real problem was the way it was dispersed, and the way smaller businesses, even if they filed on the first day, got locked out, in favor of larger companies that had existing relationships with banks. I had a friend file on the first day (they have a small brewpub) and still was considered "too late", but I think that's more of a function of the way Republicans wrote the law than the fault of larger companies who applied, too.
babylonsister
(170,963 posts)Ruths Chris Made $468 Million in Revenue but Gobbled Up $20 Million in Small Business Relief
The steakhouse chain has more than 150 locations and $86 million in cash reservesand it furloughed workers.
https://www.gq.com/story/ruths-chris-small-business-steakhouse
LisaM
(27,762 posts)I don't want them to get any money ahead of many businesses who deserve and need it more - I think we should support small businesses, and within my community, I do just that. I have only been to a Ruth's Chris once and it was at a conference, so it was a business gathering.
But even large companies depend on cash flow, and they may need stimulus money at some point, if that's the case, so be it. They certainly should not be at the front of the line.
Newest Reality
(12,712 posts)If and when eating out at a restaurant is a "thing" again, I certainly won't visit their establishments and fund their grab and go mentality. They can, as they say, stuff it.
Well, I am broke and can never eat out anyway, but it's the thought that counts. If I weren't though...
SMC22307
(8,088 posts)Stick to an outstanding locally-owned joint.
LisaM
(27,762 posts)And nothing about the experience justifies it.
SMC22307
(8,088 posts)and while I was appreciative, I was like "where the hell did that go?!" The following year's Chipotle card was much better.
LisaM
(27,762 posts)msongs
(67,199 posts)dixiegrrrrl
(60,010 posts)Her name is Cheryl Henry...gonna file that away for future reference. The value of the stock she owns has fallen thru the basement.
The stock price of Ruth's ( which includes other restaurants in the company)
hit below 3.00 a share, down from the normal high 20's. in March.
It's around $8.00 now.
keithbvadu2
(36,369 posts)Ruth's Chris Steak House got the maximum $10 million loan TWICE by considering two subsidiaries as separate companies.