Red Lobster, a well-known seafood restaurant chain, has been reportedly considering filing for Chapter 11 bankruptcy, according to Bloomberg. While there have been rumors of mass closures, it is currently believed that such drastic measures are unlikely. The restaurant first opened its doors in Florida over 50 years ago and has a long history. In Mississippi, there are five Red Lobster locations located in Jackson, Meridian, D’Iberville, Tupelo, and Hattiesburg.
Chapter 11 bankruptcy is a type of reorganization bankruptcy that allows a business to remain operational while restructuring its finances in order to gradually repay existing debts. As of now, Red Lobster has not officially filed for bankruptcy. Over the years, the ownership of Red Lobster has seen changes. In 2014, Golden Gate Capital acquired the restaurant from Darden Restaurants through a leveraged buyout. Thai Union held a 25% stake in the chain before acquiring Golden Gate’s share in 2020.
If Red Lobster were to file for Chapter 11 bankruptcy, it would allow the company to restructure its finances and potentially avoid liquidation. However, it is important to note that this is just speculation at this point and nothing official has been announced. For further information or inquiries about this topic, Ross Reily can be contacted via email at rreily@gannett.com or by phone at 601-573-2952. His updates are also available on Twitter @GreenOkra1.
