Popular seafood chain considers bankruptcy filing in U.S., no word on Canada
Published April 18, 2024 at 10:33 am
A popular seafood chain struggling with financial troubles is reportedly considering filing for bankruptcy.
Seafood chain Red Lobster
A Chapter 11 bankruptcy is a type of “reorganization” where the debtor usually remains in possession of the company and may continue to operate its business, and, with court approval, may borrow new money, according to the U.S. Courts government website.
The restaurant closed eight locations in the U.S. in 2023 and is reportedly struggling after pandemic lockdowns and labour costs.
Red Lobster hasn’t made final decisions but has consulted law firm King & Spalding, according to Bloomberg.
It’s not immediately clear if the Canadian Red Lobster restaurants would be impacted in the possible bankruptcy filing.
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A request for comment yesterday to the Canadian Red Lobster media contact from insauga.com was not returned as of Thursday morning.
Known for its seafood and tasty Cheddar Bay Biscuits, Red Lobster has been in the United States for over 50 years.
Seafood enthusiast Bill Darden opened the first Red Lobster in Lakeland, Florida in 1968.
The family-owned restaurant focused on “making delicious, high-quality seafood available and affordable to everyone,” according to the Red Lobster website.
The chain made its way to Canada in 1983. There are currently nine locations in the GTA, including restaurants in Toronto, Mississauga, Burlington, Brampton and Oshawa.
There are over 700 locations around the world, according to the Red Lobster website.
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