Red Lobster Exiting Bankruptcy
Red Lobster is exiting Chapter 11 bankruptcy after a federal judge approved its restructuring plan. The seafood restaurant chain faced struggles including debt, closures, and bad business decisions. A group of investors will acquire the chain, with a new CEO appointed.
Key Points
- Approval of restructuring plan by federal judge
- Acquisition by RL Investor Holdings LLC
- New CEO appointed to lead the company
Pros
- Red Lobster is able to restructure and continue operating
- New investment plan to reinvigorate the brand
Cons
- Had to close locations and sell off equipment
- Previous bad business decisions led to bankruptcy