The whispers are now official: Red Lobster has filed for bankruptcy protection. The seafood restaurant chain announced Sunday that it filed for relief under Chapter 11, under.
The whispers are now official: Red Lobster has filed for bankruptcy protection. The seafood restaurant chain announced Sunday that it filed for relief under Chapter 11, under a stalking-horse agreement in which Red Lobster will sell the business to an entity created and controlled by its existing term lenders, reports the Wall Street Journal. The company says proceeding this way will allow it to streamline operations and continue operating while working out a plan to repay its creditors, per Bloomberg. That outlet notes that, per a court filing, Red Lobster listed assets of $1 billion to $10 billion, and liabilities equaling the same amount, in its bankruptcy petition.
