Red Lobster’s restaurants will remain open and operating as usual during the Chapter 11 process. The company is optimistic, saying Red Lobster will continue to be the world’s largest and most-loved seafood restaurant. The Company has been working with vendors to ensure that operations are unaffected and has received a $100 million debt-in-possession (“DIP”) financing commitment from its existing lenders.
Red Lobster Management LLC has voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Middle District of Florida. The Company intends to use the proceedings to drive operational improvements, simplify the business by reducing locations, and pursue a sale of substantially all of its assets as a going concern.
Jonathan Tibus, the Company’s CEO, said, “This restructuring is the best path forward for Red Lobster. It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth.”
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