Tuesday, June 25, 2024

Red Lobster’s US bankruptcy case will continue in Canada

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Florida based Red Lobster Management LLC said the 56 year old chain will continue operations

Restaurant chain Red Lobster will apply to an Ontario court to recognize and enforce Chapter 11 bankruptcy in the United States, according to lawyers representing its Canadian operations. In an email to The Canadian Press, Link Rogers said he will appeal to the Ontario Superior Court of Justice on behalf of the seafood restaurant’s Canadian operations.

Red Lobster Canada Inc. operates 27 restaurants in Canada and is listed as a related debtor in bankruptcy protection proceedings in the United States. Earlier this week, a court granted a request by Red Lobster to stay the proceedings. As a result, creditors cannot take any action against Red Lobster.

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Florida-based Red Lobster Management LLC said the 56-year-old chain will continue operations. But they have closed dozens of outlets in the United States this month. They have to take this step because they cannot keep up with rising costs and increased competition in the restaurant industry.

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