Red Lobster sought to reassure customers that it will not be going out of business despite filing for Chapter 11 bankruptcy. The company issued a statement on Tuesday acknowledging its current financial hardships and stressing that a legal restructuring will allow it to strengthen its surviving restaurant locations. "Bankruptcy is a word that is often misunderstood," Red Lobster's communications team said in the statement posted to social media.
Red Lobster filed for Chapter 11 bankruptcy protection in a Florida court late Sunday night, saying it will use "the proceedings to drive operational improvements." RED LOBSTER'S ULTIMATE ENDLESS SHRIMP DEAL CONTRIBUTED TO 3RD-QUARTER OPERATING LOSS The chain said it received a $100 million financing commitment from its existing lenders and will continue to operate its remaining restaurants during the bankruptcy process. "Together, we have a lot worth rooting for.