Press ReleaseDays after shuttering dozens of locations across the country, Red Lobster filed for bankruptcy. The long-anticipated move was another plot point for the 56-year-old American seafood chain, which has endured a series of calamities since a Thai seafood supplier became its biggest stakeholder — from the pandemic to a disastrous all-you-can-eat shrimp special that drained the company of millions.
Patrick Collins discussed with the Washington Post the potential plans of the seafood chain in the next steps of the bankruptcy process:
The stalking horse bid means Red Lobster has a preestablished offer in place with a sale timeline of Aug. 2, although another buyer could emerge. The goal appears to be minimizing the amount of time the company is in the bankruptcy process, said Patrick Collins, a partner at the New York-based law firm Farrell Fritz.
“That’s an aggressive timeline, and a recognition that the company is losing money at a very high rate and the new [$100 million] loan won’t last long,” Collins said.
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