Red Lobster has filed for Chapter 11 bankruptcy in Florida, the company said in a statement Sunday night.
Chapter 11 bankruptcy is often referred to as “reorganization bankruptcy” and typically allows a business to stay open while it reorganizes funds to pay off existing debt over time.
![The street signage for the now closed Baymeadows Road Red Lobster restaurant. Red Lobster employees arrived at the 7820 Baymeadows Road location Tuesday morning, May 14, 2024 to help clean out the restaurant, one of three Red Lobster locations that were abruptly closed Monday. [Bob Self/Florida Times-Union]](https://www.elpasotimes.com/gcdn/authoring/authoring-images/2024/05/14/NFTU/73683846007-jki-051424-red-lobster-closings-04.jpg?width=660&height=440&fit=crop&format=pjpg&auto=webp)
Red Lobster auction?
TAGeX Brands, a company that helps firms with closures and liquidations, announced on its website that it would be auctioning off equipment from locations in Texas, including Lake Jackson, Longview and San Antonio.
Who owns Red Lobster restaurants?
Golden Gate Capital took over Orlando, Florida-based Red Lobster from Darden Restaurants through a leveraged buyout in 2014. Thai Union owned 25% of the chain before buying Golden Gate’s stake in 2020, according to a report from Yahoo Finance.
Which Red Lobster locations are closed?
Each of these restaurants are currently listed as temporarily closed on the website:
USA Today Network contributed to this report.
First appeared on www.elpasotimes.com