King of Prussia Red Lobster at Risk of Closure
Red Lobster may have to close an additional 120 of its restaurants throughout the country as part of its bankruptcy process, with the King of Prussia location among them, writes Sarah Kinbar for the Philadelphia Business Journal.
The selected restaurants were identified by the company as low-performing.
The company already closed around 100 locations in May, after filing for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Middle District of Florida on May 19.
At the time, it was reported that there could be more closures if the company were not able to get better terms from its landlords.
The company is scheduled to have a second hearing on June 14, when the parties involved hope to receive some relief from U.S. Bankruptcy Judge Grace E. Robson.
When Red Lobster filed for bankruptcy, the company CEO Jonathan Tibus said restructuring was its best path forward.
“It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth,” he said.
The King of Prussia restaurant is located at 425 W. DeKalb Pike.
Read more about the King of Prussia Red Lobster in danger of closing in the Philadelphia Business Journal.
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