The seafood restaurant, Red Lobster, announced that it has filed for Chapter 11 Bankruptcy on Sunday.
Last week, Red Lobster listed 87 locations in 27 different states as “temporarily closed”.
The company, which was founded in 1968 and is based in Orlando, has stated that the remaining restaurants will continue to operate in the meantime. They will follow the Chapter 11 bankruptcy procedures.
The end goal is to safely and securely sell its assets and liabilities that are valued between $1 billion and $10 billion.
Jonathan Tibus, CEO of Red Lobster, released a statement regarding the changes.
“This restructuring is the best path forward for Red Lobster. It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth. The support we’ve received from our lenders and vendors will help ensure that we can complete the sale process quickly and efficiently while remaining focused on our employees and guests.”
Two of Dallas’ Red Lobsters, Vantage Point Dr. and E. Technology Blvd., have been immediately affected. Both locations are now listed as “closed”.
