The result: The company will likely end up in the hands of its lenders. That came the same week that Ruby Tuesday started its bankruptcy process with a plan that hands the keys to the chain to its lenders.Such deals are far from uncommon and totally understandable. But it's indicative of the state of the business that once-venerable chains can't even scrounge up bidders to help fuel bankruptcy auctions.

Indeed, several companies that have filed for bankruptcy since the pandemic have ended up sold in credit bids. CraftWorks, the owner of Logan's Roadhouse and Old Chicago that declared bankruptcy before the pandemic, was sold through a credit bid in May. Aurify Brands acquired both Le Pain Quotidien and Mayson Kaiser by first acquiring the debt for the two brands and then using that to take over the company.

To get an idea of why this is happening now, we asked Petition, a journalist who covers corporate bankruptcies and restructuring, to get an idea of what's going on.