Red Lobster has voluntarily filed for Chapter 11 bankruptcy, according to a recent press release shared with ABC News.
The largest seafood chain in the United States, which produces Cheddar Bay Biscuits, Lobsterfest, Ultimate Endless Shrimp and more, filed suit May 19 in the U.S. Bankruptcy Court for the Middle District of Florida , where the Orlando-based restaurant group is located. Headquartered.
“The company intends to use the procedure to improve its operations, simplify its activities through a reduction of sites and pursue the sale of substantially all of its assets as a going concern,” a statement said. declared Red Lobster as part of its bankruptcy filing.
A Red Lobster restaurant seen in Lakewood, California on May 15, 2024.
Eric Thayer/Bloomberg via Getty Images
“This restructuring is the best path forward for Red Lobster. It allows us to meet several financial and operational challenges and emerge stronger and refocused on our growth. The support we have received from our lenders and vendors will help ensure we can complete the sales process quickly and efficiently while remaining focused on our employees and guests,” added Jonathan Tibus, CEO of Red Lobster, about filing for bankruptcy.
Red Lobster, founded in 1968, has been struggling financially and closed several locations last May, shuttering at least 99 restaurants in 27 states. But the seafood chain said its open restaurants would continue to operate “as usual.”
The restaurant chain said its Ultimate Endless Shrimp promotion, launched nearly two decades ago and offering customers unlimited shrimp dishes for just $20, had a major impact on its bottom line.
ABC News
