A Red Lobster bankruptcy so far hasn’t affected its Springfield restaurant.
Red Lobster Management LLC, with 9 Philadelphia-area restaurants, has filed for Chapter 11 bankruptcy protection, writes Sarah Kinbar for Orlando Business Journal, as printed in Philadelphia Business Journal.
The national restaurant chain announced Sunday it had voluntarily filed for Chapter 11 bankruptcy relief in the United States Bankruptcy Court for the Middle District of Florida.
The filing comes after a number of Red Lobster closings across the nation. No Philadelphia-area restaurants were part of last week’s closures.
The company now plans to reorganize, keeping its remaining restaurants open and running so it can sell to a buyer.
It has already entered into a stalking horse purchase agreement. A stalking horse in a bankruptcy is the first bid made on a bankrupt company’s assets.
That establishes a minimum price for its assets and protects the debtor from low bids.
Red Lobster has hundreds of restaurants nationwide, including nine in the Philadelphia area, according to its website.
In addition to the Springfield restaurant on Baltimore Pike, there are Red Lobsters in Philadelphia, Lansdale, Pottstown, King of Prussia, Langhorne, Delran, New Jersey; Cherry Hill, New Jersey; and Newark, Delaware.
Read more about the Red Lobster Chapter 11 bankruptcy filing in the Philadelphia Business Journal.
