Red Lobster says it is not going out of business after filing for bankruptcy

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Red Lobster filed for bankruptcy protection in the U.S. Bankruptcy Court for the Middle District of Florida on Sunday.

chain Red Lobster has claimed it is not going out of business, seeking to clarify its recent move to file forfor the Middle District of Florida on Sunday and said it would pursue a sale of all assets. In a new statement released Tuesday, Red Lobster argued the word bankruptcy is a “misunderstood” word and offered to clarify the chain’s situation.

“Filing for bankruptcy does not mean we are going out of business,” the statement said. “In fact, it means just the opposite. It is a legal process that allows us to make changes to our business and our cost structure so that Red Lobster can continue as a stronger company going forward.” Red Lobster also cited how brands including Delta Air Lines and the car rental company Hertz have filed for bankruptcy and are now in a betterThe restaurant chain, known for its seafood offerings and cheddar cheese biscuits, opened its first location in Lakeland, Florida, in 1968 and went under the ownership of General Mills shortly after.

 

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