0
0
Red Lobster Contemplates Bankruptcy
Reportedly, seafood chain Red Lobster is considering the possibility of filing for Chapter 11 bankruptcy protection to restructure its debt. This potential move comes as the dining chain grapples with underperforming leases, long-term contracts, and escalating labor costs.
According to undisclosed sources, if Red Lobster proceeds with a bankruptcy filing, it intends to continue its operations as usual throughout the proceedings. The company aims to engage in discussions with creditors to develop a plan for reducing its debt burden. While restructuring plans are currently in progress, formal negotiation details have yet to be finalized.
Having a global presence with more than 700 restaurants worldwide, Red Lobster has faced challenges shedding its “Zombie brand” image. Following the appointment of Jonathan Tibus as the new CEO in March 2024, the company sought fresh leadership to navigate its future path. Tibus, renowned for his extensive experience in corporate restructuring, previously served as the CEO of Kona Grill.
In the midst of these developments, Red Lobster has turned to legal counsel from King & Spalding, a prominent law firm based in Orlando, Florida. Despite attempts to reach out for comments, both Red Lobster and King & Spalding have remained silent on the matter.
Image/Photo credit: source url
