According to a recent report from Bloomberg, Red Lobster, a well-known seafood restaurant chain that has been in operation for over 50 years, is reportedly considering filing for Chapter 11 bankruptcy. This news has sparked concerns among fans of the restaurant about the potential closure of its locations. However, at this time, no official plans have been announced.
Chapter 11 bankruptcy, also known as “reorganization bankruptcy,” typically allows a business to continue operating while it works on restructuring its financial obligations and paying off existing debts over a period of 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 is based on discussions, and nothing has 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.
For now, 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.