ORLANDO, Fla., May 19, 2024 /PRNewswire/ — Red Lobster Management LLC, the parent company of the iconic Red Lobster® restaurant chain, has made a strategic decision to file for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Middle District of Florida. This move is aimed at facilitating operational enhancements, streamlining business operations through a reduction in locations, and pursuing a sale of most of its assets as a going concern.
Despite this significant development, Red Lobster’s restaurants will continue to operate without disruption during the Chapter 11 process. As the world’s largest and most beloved seafood restaurant company, Red Lobster remains committed to serving its loyal customers.
The Company has been diligently working with its vendors to ensure uninterrupted operations and has secured a $100 million debtor-in-possession (“DIP”) financing commitment from its existing lenders to support its restructuring efforts.
Jonathan Tibus, CEO of Red Lobster, expressed confidence in the restructuring process, stating, “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.”
Legal counsel for Red Lobster in this process includes King & Spalding LLP, Berger Singerman LLP, and Blake, Cassel & Graydon, LLC. Alvarez & Marsal is providing financial advisory services and corporate leadership as Chief Executive and Chief Restructuring Officers, while Hilco Corporate Finance is serving as M&A advisor. Keen-Summit is advising on real estate matters.
