The Red Lobster restaurant chain has filed for Chapter 11 bankruptcy, the company announced on Sunday, May 19, 2024.
The restaurant intends to use the bankruptcy not to close down for good, but rather, to drive operational improvements, simplify the business through a reduction in locations, and pursue a sale of substantially all of its assets as a going concern, according to a press release.
The filing, done with the U.S. Bankruptcy Court for the Middle District of Florida, essentially means that Red Lobster will sell its business to an entity formed and controlled by its existing term lenders.
Will Reb Lobster Restaurants Close Down?
Red Lobster’s restaurants will remain open and operating as usual during the Chapter 11 process. The Company has been working with vendors to ensure that operations are unaffected and has received a $100 million debtor-in-possession (“DIP”) financing commitment from its existing lenders.
With that said, some Red Lobsters have shuttered around Atlanta as of late. Read our list of Red Lobster closures.
“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,” Jonathan Tibus, the Company’s CEO, said in a statement. “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.”
Final Word
But the ATL has other cool eateries as well. If you’re gluten-free, there’s plenty of options. Same goes for keto-friendly restaurants or Asian fare in Atlanta.