More Than 200,000 People Signed A Petition Asking Ruth's Chris To Return $20 Million In Small Business Loans
Category: Entirely NewVia: tig • 9 months ago • 0 comments
Read full article 449 Kristin Salaky April 22, 2020, 3:35 PM UTC Photo credit: John Greim - Getty Images
More than 200,000 people have signed a petition urging Ruth's Hospitality Group, the company behind Ruth's Chris Steak House, to return the $20 million it was granted via Payment Protection Program (PPP) loans meant to help small businesses during the COVID-19 outbreak. This was first reported on by Business Insider.
Two subsidiaries of Ruth's Hospitality Group—RCSH Operations, LLC and RCSH Operations, Inc.—were each granted PPP loans of $10 million in early April, according to an SEC filing. Shortly after, a petition was created on Change.org urgingRuth's Chris Steak House CEO Mike O'Donnell to return the money to the Small Business Association. As of this writing, the petition has 220,000 signatures.
"Many small businesses are now being told there is no money left for them, and they cannot pay their employees, and may have to close forever," the petition reads in part: "This is a travesty, and a disgusting display of corporate greed during a time of disaster. Tell Ruth's Chris Steak House 'Return the money now! You will be shamed forever if you do not. People will not forget.'"
Delish reached out to Ruth's Hospitality Group for comment but did not immediately hear back.
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Ruth's Hospitality Group was able to apply for the loans, which are meant for small businesses like restaurants, because it fulfilled the requirement of having less than 500 employees per location, something that has garnered some backlash from those who feel larger companies have been able to take advantage of this factor. The fund has since been depleted of its $349 million funding before many places were able to apply and countless others were denied.
Shake Shack was similarly criticized last week after it applied for, and received, a $10 million loan through the CARES Act. The company announced it was returning that money on Sunday after receiving additional capital it needed. The company's CEO Randy Garutti and founder Danny Meyer also penned an open letter criticizing the loan application process, calling it "extremely confusing."
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