Red Lobster Says , Locations Will Stay Open , After Filing For Bankruptcy.<br />On May 19, Red Lobster confirmed in <br />a statement that the company has filed for <br />voluntary Chapter 11 bankruptcy in Florida. .<br />NBC reports that the largest seafood chain in <br />the United States said that filing for Chapter 11 will , "drive operational improvements, simplify the business <br />through a reduction in locations, and pursue a sale <br />of substantially all of its assets as a going concern.".<br />In a so-called stalking horse arrangement, Red Lobster <br />will sell the entire business to a new entity that is <br />completely owned and controlled by lenders. .<br />According to the company, lenders have <br />provided $100 million in financial commitments<br />to fund the chain's ongoing operations.<br />According to the company, lenders have <br />provided $100 million in financial commitments<br />to fund the chain's ongoing operations.<br />NBC reports that the company's bankruptcy <br />petition lists Red Lobster's assets at a value <br />between $1 billion and $10 billion.<br />The chain stressed that despite closing around <br />99 locations across the U.S., remaining locations <br />will remain open during the bankruptcy process.<br />The company added that it has been , "working with vendors to ensure <br />that operations are unaffected.".<br />This restructuring is the best path <br />forward for Red Lobster. It allows <br />us to address several financial and <br />operational challenges and emerge <br />stronger and re-focused on our growth, Jonathan Tibus, Red Lobster CEO, via NBC.<br />The 56-year-old chain was founded back in 1968.<br />By 2019, Red Lobster had expanded to include<br />nearly 700 locations across the country.<br />NBC reports that the company has struggled <br />under a growing debt load after failing to regain <br />a foothold following the COVID-19 pandemic.
