Canadian court approves Red Lobster restructuring plan, company will exit bankruptcy

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A Canadian court has cleared the reorganization plan of Red Lobster that will see the seafood chain exit bankruptcy.

Justice Peter Cavanagh of the Superior Court of Justice in Toronto on Tuesday granted an order that recognizes and gives force to the plan approved by a U.S. bankruptcy judge last week.The plan is expected to allow all 27 restaurant locations in Canada to remain open as part of the roughly 544 total locations that will stay in operation, which is down from 578 as of May's bankruptcy filing.

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Red Lobster’s ‘ultimate’ endless shrimp deal backfires, costing company millionsRed Lobster announced its 'ultimate endless shrimp' deal would become part of its regular menu back in June, a move it hoped would bring in more diners in the summer and fall, when its restaurants are at their emptiest. It worked, but it also left the company with an $11 million loss in their third quarter.
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