Red Lobster, a well-known seafood restaurant chain, is reportedly considering filing for Chapter 11 bankruptcy, according to Bloomberg. Although there are rumors of possible mass closures, it currently appears unlikely that this will occur. The restaurant first opened in Florida over 50 years ago and has five locations in Mississippi – Jackson on I-55 North, Meridian along the I-20 corridor, D’Iberville on Promenade Parkway, Tupelo on Barnes Crossing Road, and Hattiesburg on Hardy Street.
Mississippi is seeing an increasing amount of interest and discussion around 420 Day and medical marijuana approvals across the state. Additionally, downtown Jackson has undergone changes with a new owner aiming to revitalize the area.
Chapter 11 bankruptcy, also known as “reorganization bankruptcy,” allows a business to continue operating while restructuring its finances to pay off existing debts over time. As of now, Red Lobster has not officially filed for bankruptcy. The restaurant is currently owned by Golden Gate Capital, which acquired it from Darden Restaurants through a leveraged buyout in 2014. Thai Union also owned a 25% stake in the chain before buying out Golden Gate’s stake in 2020.
For more information about Red Lobster’s potential bankruptcy or any other topics related to Mississippi business news or local events, contact Ross Reily at rreily@gannett.com or (601) 573-2952 or follow him on Twitter @GreenOkra1.
