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UPDATE: Ruth's Chris returns $20 million

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UPDATE: Ruth's Chris returns $20 million

Judd Legum
Apr 24, 2020
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UPDATE: Ruth's Chris returns $20 million

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Monday’s edition of Popular Information focused on the conduct of Ruth’s Chris Steak House. The restaurant chain had $441 million in revenue last year, $86 million in cash reserves, and pays its CEO $6.2 million. But Ruth’s Chris, through its parent company Ruth’s Hospitality Group, obtained a $20 million forgivable loan from the “Paycheck Protection Program,” a fund that was supposed to benefit struggling small businesses.

Popular Information reported that, despite taking the loan, Ruth’s Chris had laid off virtually all of its hourly workers. The only people still receiving a paycheck were executives and managers. Meanwhile, thousands of real small businesses were not able to obtain a loan before the Paycheck Protection Program money ran out. The piece went viral on Twitter and Facebook. 

Twitter avatar for @JuddLegum
Judd Legum @JuddLegum
.@RuthsChris had $42.2 million in profits last year, spent $5.2M buying its own stock, and pays its CEO $6.1M It has $86M in cash reserves It just received $20M in taxpayer money from a fund meant to keep "small businesses" afloat But it gets worse
popular.infoA raw dealHow did a company with thousands of employees and over $441 million in revenue last year — and $86 million cash reserves — benefit from this fund while thousands of real small businesses received nothing?
12:15 PM ∙ Apr 20, 2020
24,199Likes17,871Retweets

On Wednesday, Popular Information reported that Ruth’s Chris had plenty of company. Reviewing hundreds of SEC filings, we identified 32 companies that pay their CEOs at least $1 million annually but obtained a forgivable loan under the Paycheck Protection Program. One company that received a large loan, Veritone, paid its CEO $18.7 million.

On Thursday morning, facing increasing public backlash about the administration of the program, the Treasury Department published new guidance about the Paycheck Protection Program. Specifically, the Treasury Department said that it is “unlikely” that any public company “with substantial market value and access to capital markets” qualifies for the loans. Treasury Secretary Steve Mnuchin said there would be “severe consequences” for companies that did not return the money by May 7.

On Thursday afternoon, Ruth’s Chris announced they would return the $20 million loan. It will now be available to small businesses that desperately need it. 


Accountability journalism and public scrutiny are powerful forces. You can support this work — and help Popular Information do more of it — by becoming a paid subscriber. It’s $50 for an entire year.  

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Change is possible. But there is a lot more work to do. Dozens of public companies have yet to return their Paycheck Protection Program loans. Look for updates in future editions of Popular Information. 


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UPDATE: Ruth's Chris returns $20 million

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17 Comments
EMV
Apr 24, 2020

Your work gives folks the information we need to speak truth to power. TRUTH is the key here. Without it we would be another angry group making unverifiable arguments.

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Ian Mark Sirota
Apr 24, 2020

Great work, Judd. Keep exposing those miscreants!

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