Red Lobster Management LLC has officially filed for Chapter 11 protection in the United States Bankruptcy Court for the Middle District of Florida. As reported by CNBC in April, this move was expected as the seafood restaurant operator had been actively seeking a buyer to avoid bankruptcy.
The company’s restructuring plan includes store closures and selling off most of its assets, which is outlined in their recent bankruptcy filing. Red Lobster has entered into a purchase agreement with an entity controlled by its existing term lenders.
In addition, Red Lobster has secured a $100-million debtor-in-possession commitment from its lenders and plans to keep all locations open during the bankruptcy process. According to CEO Jonathan Tibus, who was recently appointed as part of their restructuring efforts, this decision will allow them to address financial and operational challenges while focusing on growth.
Previously owned by Darden Restaurants before being sold off in 2014 to private equity firm Golden Gate Capital (who later sold it off again), Red Lobster remains optimistic about completing their sale process quickly with support from lenders and vendors while prioritizing employees and guests. This news comes amidst ongoing changes within the chain’s ownership structure but does not affect operations at any current locations across America.
