Red Lobster Management LLC, the national restaurant chain and its related subsidiaries, filed for Chapter 11 bankruptcy protection late last week in the United States Bankruptcy Court for the Middle District of Florida, writes Sarah Kinbar for the Philadelphia Business Journal.
According to the company, the filing is part of a reorganization aimed at maintaining the business so it can sell to a buyer. Red Lobster will stay open and operate as usual during the bankruptcy proceedings.
The Orlando-based restaurant chain operates hundreds of locations nationwide, including three in Montgomery County: Lansdale, Pottstown, and King of Prussia.
Red Lobster intends to use the reorganization process to drive operational improvements, reduce the number of locations to simplify business, and pursue the sale of its assets as a going concern.
The company has already entered into a stalking horse purchase agreement. A stalking horse in the contest of bankruptcy is the first bid made on the assets of a bankrupt company. This establishes the minimum price for which the assets can be bought to protect the debtor from low bids.
Read more about Red Lobster filing for bankruptcy in the Philadelphia Business Journal.
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