Red Lobster, a beloved seafood restaurant chain that has been in business for over 50 years, is reportedly contemplating filing for Chapter 11 bankruptcy. This news has led to speculation about the future of the iconic cheddar bay biscuits, but it is important to note that at this time, the closure of stores is not confirmed.
Chapter 11 bankruptcy, also known as “reorganization bankruptcy,” typically allows a business to continue operating while it restructures its finances to repay existing debts over a period of time. While Red Lobster has not officially filed for bankruptcy as of now, discussions regarding the possibility have been taking place.
An employee at a Red Lobster location in Phoenix mentioned that the information in the Bloomberg report is based on talks, and no concrete plans have been announced yet regarding store closures. Both Red Lobster and the law firm working with them on this decision, King & Spalding, have not yet provided any official statement on the matter.
For more information on this developing story, please contact the reporter at endia.fontanez@gannett.com or follow @EndiaFontanez for updates. Support local journalism by subscribing to azcentral.com today.