Red Lobster Files For Chapter 11 Bankruptcy Protection

(Associated Press) – Casual dining chain Red Lobster has filed for Chapter 11 bankruptcy protection.

The 56-year-old chain  made the filing late Sunday, days after shuttering dozens of restaurants.

Red Lobster brought seafood to the masses with inventions like popcorn shrimp and “endless” seafood deals.

But it struggled in recent years with rising costs, increased competition and changing customer tastes.

Red Lobster says its remaining restaurants will continue to operate through the bankruptcy proceedings.

As part of the filing, Red Lobster entered into a “stalking horse” agreement, meaning it plans to sell its business to an entity formed by its lenders.

The company says it has estimated assets and liabilities worth between $1 billion and $10 billion.

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