Facing furor, Ruth's Chris high-end steak chain returns $20 million small business loan

[babylonsister]

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]

1. Pin 'em to the ground, cover 'em with fire ants, and ask nicely

And sooner or later even the greediest motherfuckers might reconsider their money grab. But it takes that at a minimum sometimes.

[Dem2]

2. I'm glad.

It was shameful that they took that money.

[Cha]

3. wow.. KR

[dixiegrrrrl]

4. I want to see a lot of lawsuits for trump's money giveaway to his friends

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]

5. Gordon Sonderland got some of the PPP money, too.

Link to tweet

[Cirque du So-What]

6. Glad that pressure worked

I'll still never patronize them for having accepted that money in the first place.

[LisaM]

7. They have thousands of employees.

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]

9. They have millions in revenue, too....

Ruth’s 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 reserves—and it furloughed workers.

https://www.gq.com/story/ruths-chris-small-business-steakhouse

[LisaM]

11. I think we basically agree, though.

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]

8. Well,

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]

10. You won't miss much -- overpriced, mediocre food.

Stick to an outstanding locally-owned joint.

[LisaM]

12. They are SO overpriced.

And nothing about the experience justifies it.

[SMC22307]

14. Someone once gave me a $50 gift certificate...

and while I was appreciative, I was like "where the hell did that go?!" The following year's Chipotle card was much better.

[LisaM]

15. Yeah, that's two glasses of wine and a tip. n/y

[msongs]

13. their early sponsorship put rush limabaugh on the map...along with snapple nt

[dixiegrrrrl]

16. Turns out the CEO of Ruth's makes a bit over 6 million a year..

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]

17. Ruth's Chris Steak House got the maximum $10 million loan TWICE by considering two subsidiaries as s

Ruth's Chris Steak House got the maximum $10 million loan TWICE by considering two subsidiaries as separate companies.