Restructuring to Optimize Real Estate
Footprint and Facilitate Going Concern Sale
ORLANDO,
Fla., May 19, 2024 /PRNewswire/ -- Red Lobster
Management LLC, along with its direct and indirect operating
subsidiaries ("Red Lobster" or "the Company"), owner and operator
of the Red Lobster® restaurant chain, today announced that the
Company has voluntarily filed for relief under Chapter 11 of the
Bankruptcy Code in the United
States Bankruptcy Court for the Middle District of
Florida. The Company intends to
use the proceedings to drive operational improvements, simplify the
business through a reduction in locations, and pursue a sale of
substantially all of its assets as a going concern. As part
of these filings, Red Lobster has entered into a stalking horse
purchase agreement pursuant to which Red Lobster will sell its
business to an entity formed and controlled by its existing term
lenders.
Red Lobster's restaurants will remain open and operating as
usual during the Chapter 11 process, continuing to be the world's
largest and most-loved seafood restaurant company. The Company has
been working with vendors to ensure that operations are unaffected
and has received a $100 million
debtor-in-possession ("DIP") financing commitment from its existing
lenders.
Jonathan Tibus, the Company's
CEO, said "This restructuring is the best path forward for Red
Lobster. It allows us to address several financial and operational
challenges and emerge stronger and re-focused on our growth. The
support we've received from our lenders and vendors will help
ensure that we can complete the sale process quickly and
efficiently while remaining focused on our employees and
guests."
Court filings and information about the claims process can be
found at a separate website maintained by Red Lobster's claims
agent, https://dm.epiq11.com/RedLobster, or by calling Toll
Free (U.S.& Canada): (888)
754-0507.
King & Spalding LLP, Berger Singerman LLP and Blake, Cassel
& Graydon, LLC are serving as legal advisors. Alvarez
& Marsal is serving as financial advisor and providing
corporate leadership as Chief Executive and Chief Restructuring
Officers. Hilco Corporate Finance is serving as M&A advisor to
Red Lobster. Keen-Summit is serving as real estate advisor.
About Red Lobster Seafood Co. 
Red Lobster is where the world goes for seafood, now and for
generations. With a proud heritage, Red Lobster is focused on
serving the highest quality, freshly prepared seafood that is
traceable, sustainable, and responsibly sourced. The Company was
founded in 1968 and is headquartered in Orlando, FL. To learn more about Red
Lobster, including locations and menu options, please visit
http://www.redlobster.com or find us on Facebook, X,
Instagram or TikTok.
Media
mediacontact@redlobster.com
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SOURCE Red Lobster Seafood Co.