Advertisement

Red Lobster files for bankruptcy protection. Will restaurants remain open?

Click to play video: 'Red Lobster files for bankruptcy protection'
Red Lobster files for bankruptcy protection
WATCH: U.S.-based restaurant chain Red Lobster has filed for Chapter 11 bankruptcy protection in a Florida court after securing US$100 million in financing commitments from its existing lenders, the company said on Sunday – May 20, 2024

U.S.-based restaurant chain Red Lobster has filed for Chapter 11 bankruptcy protection in a Florida court after securing US$100 million in financing commitments from its existing lenders, the company said on Sunday.

The company listed its assets and liabilities to be between US$1 billion and US$10 billion, according to a court filing.

Red Lobster said its restaurants will be open and operate as usual during the bankruptcy proceedings, and plans to reduce its locations as well as pursue a sale of substantially all its assets.

Click to play video: 'Red Lobster’s ‘ultimate’ endless shrimp deal backfires, costing company millions'
Red Lobster’s ‘ultimate’ endless shrimp deal backfires, costing company millions

The restaurant chain also said it has entered into a “stalking horse” purchase agreement to sell its business to an entity formed and controlled by its existing term lenders.

Story continues below advertisement

“This restructuring is the best path forward for Red Lobster. It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth,” said Jonathan Tibus, CEO of Red Lobster.

Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.

Get weekly money news

Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.
By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

Red Lobster has about 700 locations around the world, according to its website.

(Reporting by Harshita Meenaktshi in Bengaluru; Editing by Krishna Chandra Eluri)

Sponsored content

AdChoices