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Is Red Lobster going out of business? Here’s what it means for Mississippi restaurants

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7 months ago

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Is Red Lobster going out of business? Here’s what it means for Mississippi restaurants

Red Lobster, a popular seafood restaurant chain, has reportedly been considering filing for Chapter 11 bankruptcy, according to a report from Bloomberg.

That has spurred rumors of mass closures, though at this time, that seems unlikely.

The restaurant first opened in Florida over 50 years ago. Mississippi has five locations, 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.

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Chapter 11 bankruptcy is often referred to as “reorganization bankruptcy” and typically allows a business to stay open while it reorganizes funds to pay off existing debt over time.

At the time of writing, Red Lobster has not officially filed for bankruptcy.

Who owns Red Lobster?

Golden Gate Capital took over Orlando, Florida-based Red Lobster from Darden Restaurants through a leveraged buyout in 2014. Thai Union owned 25% of the chain before buying Golden Gate’s stake in 2020, according to a report from Yahoo Finance.

Source: Arizona Republic

Ross Reily can be reached by email at rreily@gannett.com or 601-573-2952. You can follow him on Twitter @GreenOkra1.

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