Red Lobster, a popular seafood chain restaurant, is reportedly considering filing for Chapter 11 bankruptcy, according to Bloomberg. Despite rumors of widespread closures, it appears unlikely at this time. The chain first opened its doors over 50 years ago in Florida and now has locations across the country, including two in El Paso, Texas – one on Gateway Blvd. West and a newer one on Joe Battle Blvd.
As of now, Red Lobster has not officially filed for bankruptcy. Chapter 11 bankruptcy, also known as “reorganization bankruptcy,” allows a business to continue operating while restructuring its finances to pay off existing debts over time. Golden Gate Capital acquired the chain from Darden Restaurants in a leveraged buyout in 2014. Thai Union previously owned 25% of Red Lobster before acquiring Golden Gate’s stake in 2020.
Red Lobster fans can still enjoy their favorite dishes at their local locations as the chain navigates its potential bankruptcy considerations. The restaurant remains a popular culinary destination for seafood lovers across the country. If Red Lobster does decide to file for bankruptcy, it will be a significant development for the seafood industry and the restaurant industry as a whole.
