Red Lobster preparing to file for bankruptcy

ORLANDO, Fla. (WKRC) — Seafood chain Purple Lobster is reportedly making ready to file for chapter.

Based on Restaurant Enterprise On-line, citing a report from Bloomberg, the corporate is contemplating submitting for Chapter 11 chapter safety to restructure its debt.

Per Restaurant Enterprise, Jonathan Tibus, a managing director with restructuring agency Alvarez & Marsal, was put in final month as the corporate’s new CEO. The transfer led to hypothesis that Thai Union Group is making ready the model on the market, in line with the outlet, which reported that Tibus was the corporate’s third CEO up to now two years.

Based on the outlet, citing the Bloomberg report, Orlando-based Purple Lobster is looking for recommendation from regulation agency King & Spalding to divest from long-term contracts and renegotiate leases

Per Restaurant Enterprise On-line, the seafood chain, which has round 650 places throughout america, has struggled lately on account of management troubles and strategic missteps. The corporate’s monetary struggles had been magnified by financial hardships which have impacted a majority of American companies because the starting of the COVID-19 pandemic.

Thai Union Group made the choice to chop ties with Purple Lobster and search for a purchaser in January, in line with the outlet, which reported that Purple Lobster suffered a $33 million loss in 2022.

The outlet attributed these losses to much less People selecting to eat out at eating places and a rise in meals and labor prices. Purple Lobster closed 16 places, per the outlet.

Final summer time, Purple Lobster launched a $20 all-you-can-eat shrimp deal which, though in style with prospects, ended up costing the corporate over $11 million in a single quarter.

Per the outlet, citing the Bloomberg report, the restructuring talks are ongoing. No official determination has been made.