America’s popular Seafood chain “Red Lobster” reportedly filed for Chapter 11 bankruptcy protection over the weekend.
The chain revealed in a court filing late Sunday Red Lobster’s estimated assets are between $1 billion and $10 billion, while its estimated liabilities are between $1 billion and $10 billion.
The bankruptcy petition was allegedly signed by Jonathan Tibus, a corporate restructuring specialist who became Red Lobster’s CEO in March.
“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,” Tibus 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.”
Reports have estimated that roughly 580 locations in the United States and Canada will stay open through the process.
In September 2023, Rite Aid also announced it was filing for bankruptcy and closing stores nationwide.
At the time, the pharmacy talked about closing as many as 500 stores, and either sell or let creditors take over its remaining operations.
The Wall Street Journal previously reported that the company planned to file for bankruptcy protection as it faced more than $3.3 billion in debt and over a thousand federal lawsuits over its role in the opioid epidemic.
