Red Lobster files for bankruptcy protection when the auctions begin

US-based restaurant chain Red Lobster has filed for Chapter 11 bankruptcy protection in a Florida court after securing $100 million in financing from its existing creditors, the company said on Sunday, Reuters reported.

The business lists its assets and liabilities as between $1 billion and $10 billion, according to court filings.

Last week, the company’s website showed 87 locations in 27 states “temporarily” closed.

Online restaurant liquidation firm TAGeX Brands is auctioning the contents of 48 of them, including the location at 655 Jefferson Road, Henrietta, and noted that those restaurants have closed permanently.

The Democrat and Chronicle reached out to the Henrietta location on May 13 and found the phone number not working and the business locked and dark.

Red Lobster at 1515 W. Ridge Road in Greece remains open.

In its bankruptcy filing, Red Lobster plans to reduce its number of locations and sell off substantially all of its assets.

The company said its open restaurants will continue to operate as usual during the bankruptcy proceedings.

“This restructuring is the best path forward for Red Lobster. It allows us to address a number of financial and operational challenges, emerge stronger and refocus on our growth,” said Jonathan Dibus, CEO of Red Lobster.

By 2023, the seafood chain’s “Ultimate Endless Shrimp“The deal was more popular than expected, inadvertently becoming a major factor in the $11 million loss in the third quarter.

This story includes reporting by Harshita Meenaktshi in Bangalore and editing by Krishna Chandra Eluri.

Correspondent Marcia Greenwood covers general assignments. Send story tips to [email protected]. Follow her on Twitter @Marcia Greenwood

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