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Red Lobster Considers Bankruptcy to Deal With Leases and Labor Costs
- Company working with King & Spalding for restructuring advice
- Owner Thai Union earlier wrote down its investment in business
Seafood restaurant chain Red Lobster is mulling a Chapter 11 bankruptcy filing as it looks to restructure its debt, according to people with knowledge of the matter.
Red Lobster has been getting advice from law firm King & Spalding, said the people, who asked not to be identified discussing a private matter. The dining chain is considering a possible Chapter 11 filing to shed some long-term contracts and renegotiate a swath of leases, the people said.
Red Lobster's cash flows have been weighed down by onerous leases and labor costs, among other issues. Restructuring discussions are ongoing and a final decision hasn't been made, they said. Filing for bankruptcy would allow the company to keep operating while it works on a debt-cutting plan.
Messages left with Red Lobster and King & Spalding were not returned.
Red Lobster traces its roots to a single restaurant in Lakeland, Florida in 1968, according to its website. The company introduced its popular cheese-flavored biscuits in 1992, and Red Lobster now boasts hundreds of locations across the US and Canada, along with international franchises.
The restaurant chain has gone through multiple owners and management changes in recent years. Thai Union Group Plc, which took control of the company in 2021, this year wrote down its stake in Red Lobster and said the company's βongoing financial requirements no longer align with Thai Union's capital allocation priorities.β
Fortress Investment Group is a key lender to Red Lobster and is among those involved in current debt negotiations, the people said.
A representative with Fortress declined to comment.
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 2021.
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looks like ryan gosling got cheek implants... he's even more literally me than before!
— cafebeef (@0xCAFEBEEF) April 16, 2024
(also this is kinda sad, probably because so many people were saying he's too old to play ken) pic.twitter.com/u0qJxF5XnP
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MFs always talking bout Street Credβ¦.. The only Credit Iβm concerned with is my FICO score. π pic.twitter.com/KLYFxYhXic
— ICE T (@FINALLEVEL) April 16, 2024
- Cream_a_da_crop : The10thman should unironically 100% seriously kill himself
- kaamrev : EAR R*PE
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Average DoorDasher pic.twitter.com/eYxlvcoo9H
— ΙΝΚΝΔΝΔ±ΝΙΉΝΙΝΙ―Ν (@LeaMaric) April 17, 2024
lmao at some autist sneeding in the replies
Have you considered they are neurodivergent, disabled or immunocompromised or are you just being ableist
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A Battle of Billions of Hindus since time immemorial.
— BJP Telangana (@BJP4Telangana) April 16, 2024
A story of Sacrifice, Valor, Worship & Victory.
The Saga of Ayodhya Ram Mandir.#RamNavami #JaiShriRam pic.twitter.com/VPNMLc7mPl
Banger video too
They are letting literal internet trolls make this vid holy lmao.
Total TradChad victory
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Basically like the /r/Polandball joke life preserve, because much of the front page is now spammed by colonizers who basically spam memes