Business

Red Lobster files for bankruptcy

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A sign is posted on the exterior of a Red Lobster restaurant on April 17, 2024 in Rohnert Park, California. 
Justin Sullivan | Getty Images

Red Lobster has filed for bankruptcy, continuing the process to shrink its footprint and find a buyer, the company said in a statement.

CNBC reported last month the seafood chain was seeking a buyer, weighed down by significant debt and long-term leases. The company recently appointed a restructuring expert — Jonathan Tibus, a managing partner with advisory firm Alvarez & Marsal — as its CEO.

“This restructuring is the best path forward for Red Lobster,” Tibus said in a statement late Sunday. “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.”

This story is developing. Please check back for updates.

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