President Coker provides update on future of RT Lodge
March 2, 2021
In January, Maryville College announced that a bankruptcy declaration by RTI Holdings, the parent company of Ruby Tuesday Restaurant Group, made future operations at RT Lodge uncertain.
Leased from the College since 1997, RTI has operated the restaurant, hotel and special event site on seven acres in the College Woods. In that span of time, the company has renovated the 1930’s-era home formerly known as “Morningside;” constructed two large, complementary guest houses; and invested in extensive landscaping.
In the January announcement, Maryville College President Dr. Bryan F. Coker explained that the College was working with legal counsel locally and in the state of Delaware, where the bankruptcy was filed, to object to – and possibly contest – a forced lease reassignment to global investment bank and financial services company Goldman Sachs (which now holds most of RTI’s debts) and its subsidiary, Crescent Hotels and Resorts.
On Monday, President Coker emailed a message to faculty, staff and students, explaining that the College has reached an agreement in which the RT Lodge lease will continue to be held by “Ruby Tuesday, Inc.,” which is now indirectly owned by a Goldman Sachs entity.
Below is Dr. Coker’s message in its entirety.
——–
To the MC Community:
You will recall my previous email message regarding the future stewardship of RT Lodge, due to the bankruptcy proceedings for Ruby Tuesday, Inc. I am now writing to provide an update on this matter.
In the recent bankruptcy proceedings, Maryville College reached an agreement in which the RT Lodge lease will continue to be held by “Ruby Tuesday, Inc.,” which is now indirectly owned by a Goldman Sachs entity. The officers of Ruby Tuesday, Inc. are the RT Lodge General Manager (Gary Doyle), as well as representatives to be determined of both Maryville College and Goldman Sachs. The lease and terms remain largely the same as those under which the Lodge has been operating in recent years, with some changes which are favorable to the College. Any assignment of the lease cannot be made without consent of the College, provided such consent is not unreasonably withheld. Most notably, there is no intention to reassign the lease to Crescent Hotels and Resorts, as previously proposed, and to which the College strongly objected.
We believe this agreement provides for protection of the College’s interests, and appropriate stewardship of the Morningside legacy. Looking forward, the College remains amenable to an eventual lease assignment with an entity which aligns with the small, local, and historic nature of the Lodge, and that will be an appropriate and beneficial partner for the College.
All things considered, this was a “win” for Maryville College and the RT Lodge/Morningside legacy, as we now have even greater protections of our interests than before, and the Lodge lease is not being forcibly reassigned. I am grateful to all those in the internal and external communities who provided their support, especially the Blount Chamber Partnership, as we presented a unified front, advocating for the Lodge’s future. We will continue to keep you apprised of any additional developments pertaining to RT Lodge.
Sincerely,
Bryan F. Coker, Ph.D.
President