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In its bankruptcy petition filed on Sunday, May 19, the company listed assets of $1 billion and liabilities of $10 billion.
The filing stated that the company "intends to use the proceedings to drive operational improvements, simplify the business through a reduction in locations, and pursue a sale of substantially all of its assets as a going concern."
The company said restaurants not listed as "temporarily closed" on its website will remain "open and operating as usual during the Chapter 11 process."
Founded in 1968, Red Lobster has around 600 restaurants in the United States, Canada, and overseas.
"This restructuring is the best path forward for Red Lobster," Jonathan Tibus, the company's CEO, said in a statement. "It allows us to address several financial and operational challenges, emerge stronger, and become re-focused on our growth.
"The support we've received from our lenders and vendors will help ensure that we can complete the sale process quickly and efficiently while remaining focused on our employees and guests."
This continues to be a developing story. Check back to Daily Voice for updates.
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