Red Lobster files for bankruptcy protection as auctions begin

Red Lobster files for bankruptcy protection as auctions begin

US-based restaurant chain Red Lobster said it has filed for Chapter 11 bankruptcy protection with a Florida court after obtaining $100 million in financing commitments from its existing lenders, Reuters reported on Sunday.

The company listed its assets and liabilities at between $1 billion and $10 billion, according to the court filing.

Last week, the company’s website showed that 87 locations in 27 states were “temporarily” closed.

Online restaurant liquidation company TAGeX Brands was auctioning off the contents of 48 of them, including the location at 655 Jefferson Road, Henrietta, and indicated those restaurants had closed permanently.

The Democrat and Chronicle contacted the Henrietta location on May 13 and found that the phone number was no longer working and that the business was closed and dark.

Red Lobster at 1515 W. Ridge Road, Greece, remains open.

In its bankruptcy filing, Red Lobster detailed plans to reduce the number of its locations and pursue a sale of nearly all of its assets.

The company said its open restaurants will operate as usual during the bankruptcy proceedings.

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

In 2023, the seafood chainThe ultimate endless shrimp“The deal became more popular than expected, and inadvertently became a major factor in the $11 million loss in the third quarter.

This story includes reporting by Harshita Meenakchi in Bengaluru and editing by Krishna Chandra Eluri.

Reporter Marcia Greenwood covers general assignments. Send story tips to [email protected]. Follow her on Twitter @MarciaGreenwood

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