Red Lobster, a 50-year-old seafood restaurant chain, is considering filing for Chapter 11 bankruptcy, according to reports from Bloomberg. While the news has sparked concerns about potential store closures, no official plans have been announced as of yet.
Chapter 11 bankruptcy is a form of restructuring that allows businesses to continue operating while they work on paying off existing debts and restructuring their financial obligations over time. Red Lobster has not yet filed for bankruptcy as of the current moment.
An employee at a Red Lobster location in Phoenix mentioned that the information in the Bloomberg article was based on discussions and nothing had been confirmed. 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.
