Crimson Lobster, a well-liked seafood restaurant chain that first opened in Florida over 50 years in the past, has reportedly been contemplating submitting for Chapter 11 chapter, based on a report from Bloomberg. This has spurred rumors of mass closures, although presently, that appears unlikely.

Chapter 11 chapter is sometimes called “reorganization chapter” and usually permits a enterprise to remain open whereas it reorganizes funds to repay current debt over time.

On the time of writing, Crimson Lobster has not formally filed for chapter.

An worker at a Phoenix Crimson Lobster location informed The Republic that the Bloomberg article was primarily based on talks, however that nothing has but been confirmed, and the chain has shared no instant plans to shut shops.

The Republic reached out to Crimson Lobster and King & Spalding, the regulation agency reportedly working with Crimson Lobster on the choice, however didn’t obtain a response on the time of publication.

Eating:Why does not Phoenix have any Michelin star eating places? It is difficult. And will change

Attain the reporter at endia.fontanez@gannett.com. Observe @EndiaFontanez on X, previously Twitter.

Assist native journalism. Subscribe to azcentral.com in the present day.