Red Lobster, a well-known seafood chain restaurant, is reportedly thinking about filing for Chapter 11 bankruptcy, according to Bloomberg. Despite the rumors of widespread closures, it seems unlikely at this time. The restaurant first opened its doors over 50 years ago in Florida and now has locations across the country, including two in El Paso, Texas – one on Gateway Blvd. West and a newer one on Joe Battle Blvd.
Chapter 11 bankruptcy allows a business to continue operating while restructuring its finances to pay off existing debts over time. While Red Lobster has not officially filed for bankruptcy yet, it is considering this option as a way to address its financial difficulties. Golden Gate Capital acquired the chain from Darden Restaurants in a leveraged buyout in 2014. Thai Union previously owned 25% of Red Lobster before acquiring Golden Gate’s stake in 2020.
Red Lobster fans can still enjoy their favorite dishes at their local locations as the chain navigates its potential bankruptcy considerations. The restaurant remains a popular culinary destination for seafood lovers across the country and continues to offer high-quality food and excellent service to its customers.