The severance charge of $1.8M is huge for a company the size of Ruth's.If the average employee earns $55k (which is probably high) and gets 3 months severance, that works out to 130 employees.Even if you assume some very highly paid execs are included, it still would be about 100 employees severed.Ouch. Will this company survive? They are in the middle of a perfect storm.I drive by a Ruth's every day in Orlando, I hope it doesn't go vacant.
That is about 14% of last years profit. What a hit... on top of capital gains and taxes for the sale/lease back of the company headquarters. Looks like bailout money to the Execs.... Get the cash and runnnnnn,,,,,,