Red Lobster, a popular seafood restaurant chain with a 50-year history, is reportedly considering filing for Chapter 11 bankruptcy, according to a report from Bloomberg. This has sparked concerns about the potential closure of Red Lobster locations, but no official plans have been announced yet.
Chapter 11 bankruptcy, also known as “reorganization bankruptcy,” typically allows businesses to continue operating while they work on restructuring their financial obligations and paying off existing debts over a period of time. Red Lobster has not yet filed for bankruptcy as of now.
An employee at a Red Lobster location in Phoenix said that the information in the Bloomberg article is based on discussions and nothing has been confirmed yet. The chain has not revealed any immediate intentions to shut down stores.
The Republic reached out to both Red Lobster and King & Spalding, the law firm reportedly assisting Red Lobster with their decision, but did not receive a response at the time of reporting. It’s important to note that the situation is still developing and more information may come to light in the future.
Fans of Red Lobster’s famous cheddar bay biscuits will have to wait and see what the future holds for the iconic seafood chain. Stay tuned for updates as the story progresses.
