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
Red Lobster’s cash flows have been weighed down by onerous leases and labor costs, among other issues.
Photographer: Michael Nagle/Bloomberg
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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.