Seafood chain Red Lobster is currently deciding whether it should file a chapter 11 bankruptcy to avoid financial collapse. It is currently being advised by law firm King & Spalding, according to Bloomberg, which broke the story.
The chain wants to break out of certain long-term contracts and leases, and is currently struggling to make payroll.
Seafood restaurant chain Red Lobster is considering a Chapter 11 bankruptcy filing, sources say https://t.co/hv2FqWSW0R
— Bloomberg (@business) April 16, 2024
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The sources contacted said the chain is still engaged in ongoing debates and no agreement has been reached. One of the main players involved in conversation is Fortress Investment Group, a crucial lender.
Red Lobster has changed management multiple times over the last several years. In 2020, it fell under the control of Thai Union Group Plc (after it bought Golden Gate Capital’s share), which is now relieving its stake in the chain citing its “ongoing financial requirements no longer align[ing]” with its priorities.
Red Lobster began in Lakeland, Florida in 1968. It currently has over 700 locations around the globe.
Shane Devine is a writer covering politics and business for VT and a regular guest on The Unusual Suspects. Follow Shane’s work here.
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