Red Lobster In Bankruptcy Act

According to press reports, Red Lobster has filed for voluntary Chapter 11 bankruptcy in Florida, the company confirmed in a statement late Sunday night.
The 56-year-old seafood chain — the largest of its kind in the U.S. — said it would “drive operational improvements, simplify the business through a reduction in locations, and pursue a sale of substantially all of its assets as a going concern.”
Red Lobster has agreed to sell its business to a new entity wholly owned and controlled by its lenders, a so-called stalking horse arrangement. The company said it had received a $100 million financing commitment from its lenders to fund ongoing operations.
The bankruptcy petition lists the business’s assets as worth between $1 billion and $10 billion.
The company had recently announced it was closing some 99 locations across the country.
But company stressed that its remaining restaurants will remain open during the bankruptcy process and that it has been “working with vendors to ensure that operations are unaffected.”

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