Red Lobster preparing to file for bankruptcy

ORLANDO, Fla. (WKRC) — Seafood chain Pink Lobster is reportedly getting ready to file for chapter.

In keeping with Restaurant Enterprise On-line, citing a report from Bloomberg, the corporate is contemplating submitting for Chapter 11 chapter safety to restructure its debt.

Per Restaurant Enterprise, Jonathan Tibus, a managing director with restructuring agency Alvarez & Marsal, was put in final month as the corporate’s new CEO. The transfer led to hypothesis that Thai Union Group is getting ready the model on the market, in accordance with the outlet, which reported that Tibus was the corporate’s third CEO previously two years.

In keeping with the outlet, citing the Bloomberg report, Orlando-based Pink Lobster is searching for recommendation from regulation agency King & Spalding to divest from long-term contracts and renegotiate leases

Per Restaurant Enterprise On-line, the seafood chain, which has round 650 places throughout the USA, has struggled in recent times as a consequence of management troubles and strategic missteps. The corporate’s monetary struggles have been magnified by financial hardships which have impacted a majority of American companies for the reason that starting of the COVID-19 pandemic.

Thai Union Group made the choice to chop ties with Pink Lobster and search for a purchaser in January, in accordance with the outlet, which reported that Pink Lobster suffered a $33 million loss in 2022.

The outlet attributed these losses to much less Individuals selecting to eat out at eating places and a rise in meals and labor prices. Pink Lobster closed 16 places, per the outlet.

Final summer time, Pink Lobster launched a $20 all-you-can-eat shrimp deal which, though widespread with clients, ended up costing the corporate over $11 million in a single quarter.

Per the outlet, citing the Bloomberg report, the restructuring talks are ongoing. No official determination has been made.