Red Lobster announced Tuesday their plans to close more than 50 locations across the United States as the company weighs filing for bankruptcy.
From Fox News:
According to a report by Bloomberg citing people familiar with the discussions, Red Lobster is weighing a Chapter 11 bankruptcy filing to renegotiate burdensome leases and address other long-term contracts as well as rising labor costs.
The outlet reported that the seafood restaurant chain is being advised by law firm King & Spalding on the subject, and that discussions about restructuring are ongoing, and no final decisions have been made about a bankruptcy filing.
By filing for Chapter 11 bankruptcy, the company could continue to operate while it works with creditors and investors to put in place a debt reduction plan that would allow it to head into the future on a better financial footing.
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Author: The First
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