Red Lobster seeks bankruptcy protection days after closing dozens of restaurants

[Eugene]

Source: Associated Press

Red Lobster seeks bankruptcy protection days after closing dozens of restaurants

BY MICHELLE CHAPMAN AND DEE-ANN DURBIN
Updated 11:17 AM EDT, May 20, 2024

Red Lobster, the casual dining chain that brought seafood to the masses with inventions like popcorn shrimp and “endless” seafood deals, has filed for Chapter 11 bankruptcy protection.

The 56-year-old chain made the filing late Sunday, days after shuttering dozens of restaurants.

“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 Red Lobster CEO Jonathan Tibus, a corporate restructuring expert who took the top post at the chain in March.

Red Lobster said it will use the bankruptcy proceedings to simplify its operations, close restaurants and pursue a sale. As part of the filings, Red Lobster has entered into a so-called “stalking horse” agreement, meaning it plans to sell its business to an entity formed and controlled by its lenders.

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Read more: https://apnews.com/article/red-lobster-bankruptcy-a30cf6293208eefd0aaaf2bcb2782291

[SWBTATTReg]

1. A shame. I've always liked them/Red Lobster. I do hope that they manage to resurrect themselves into a thriving

entity down the road. Perhaps they expanded too fast, couldn't keep up w/ things.

[bucolic_frolic]

2. No loss. The seafood will be happier.

I do miss Old Country Buffet, though. Not that I ate there a lot, but it had a few memories for me. They wrecked the last one around here a year ago. There are as of 2023, 13 remaining in the US. They went BK because in Washington state I think it was, they poisoned some guy with the food and he won millions. Corporate food, nothing better!

[XanaDUer2]

3. Happy memories dining there with my mother nt