Red Lobster Seeks Chapter 11 Bankruptcy Protection

Red Lobster has filed for Chapter 11 bankruptcy protection, continuing the process to shrink its footprint and find a buyer, the company said in a statement.

The seafood chain also said it has a so-called stalking horse bid from its existing lenders to buy the company, unless a higher bid comes along.

CNBC reported last month Red Lobster was seeking a buyer, weighed down by significant debt and long-term leases. The company recently appointed a restructuring expert — Jonathan Tibus, a managing partner with advisory firm Alvarez & Marsal — as its CEO.

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