{"id":2248544,"date":"2024-05-20T11:38:12","date_gmt":"2024-05-20T15:38:12","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/red-lobster-files-for-bankruptcy-announces-stalking-horse-sale\/"},"modified":"2024-05-20T11:43:07","modified_gmt":"2024-05-20T15:43:07","slug":"red-lobster-files-for-bankruptcy-announces-stalking-horse-sale","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/red-lobster-files-for-bankruptcy-announces-stalking-horse-sale\/","title":{"rendered":"Red Lobster Declares Bankruptcy and Plans Sale"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fred-lobster-files-for-bankruptcy-announces-stalking-horse-sale%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2248544&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Red Lobster filed for Chapter \u200c11 bankruptcy in Florida, assuring customers of ongoing service while undergoing operational improvements and\u200d considering a sale. The company saw <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/t-mobile-closes-flagship-store-in-downtown-san-francisco-as-foot-traffic-plummets\/\" title=\"T-Mobile shuts down main store in SF due to decreased foot traffic.\">declining foot traffic<\/a> and \u2062incurred significant losses, \u200dleading to this restructuring move. Red Lobster has entered a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/united-airlines-is-buying-15-supersonic-net-zero-carbon-jets-from-boom-supersonic-will-fly-twice-as-fast-as-todays-passenger-jets\/\" title=\"United Airlines Is Buying 15 Supersonic \u2018Net-Zero Carbon\u2019 Jets From Boom Supersonic, Will Fly \u2018Twice As Fast As Today\u2019s Passenger Jets\u2019\">purchase agreement<\/a> and secured $100 million in financial support to facilitate the process. \u200bRed Lobster has filed \u2064for Chapter 11 bankruptcy in Florida, pledging to continue serving customers during operational enhancements and exploring a potential\u2062 sale.\u2062 The company&#8217;s decision stems from\u200c decreasing foot traffic and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/scotus-upholds-california-flavored-tobacco-ban\/\" title=\"SCOTUS Upholds California Flavored Tobacco Ban\">substantial financial losses<\/a>. To aid the restructuring, Red Lobster has finalized a purchase agreement and obtained $100 million in financial backing.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<header> <a href=\"https:\/\/www.westernjournal.com\/news\/\">  News <\/a>   <span> <\/p>\n<p><a href=\"https:\/\/www.westernjournal.com\/author\/georgeupper\/\">  <\/a> <\/p>\n<p> <span>   By <a href=\"https:\/\/www.westernjournal.com\/author\/georgeupper\/%20\"><span>George C. Upper III<\/span><\/a> <\/span> <span>   May 20, 2024 at 8:06am <\/span> <\/span>  <\/header>\n<section>\n<p>Red Lobster filed a petition for Chapter 11 bankruptcy in Florida on Sunday, according to court documents and a statement from the company.<\/p>\n<p>There\u2019s no need to start pining for your cheddar bay biscuits quite yet, though.<\/p>\n<p>The company says it plans to keep its restaurants open and service customers while it uses the bankruptcy protection to \u201cdrive operational improvements, simplify the business through a reduction in locations, and pursue a sale of substantially all of its assets as a going concern.\u201d<\/p>\n<p>That sale will almost certainly be a company that has recently been formed by its creditors in a deal called a \u201cstalking horse arrangement,\u201d which essentially allows a <a href=\"https:\/\/www.westernjournal.com\/red-lobster-may-file-bankruptcy-labor-costs-skyrocket-report\/\" target=\"_blank\" rel=\"noopener\">bankrupt company<\/a> to choose its buyer.<\/p>\n<p>A <a href=\"https:\/\/document.epiq11.com\/document\/getdocumentbycode?docId=4334036&#038;projectCode=RLR&#038;source=DM\" target=\"_blank\" rel=\"noopener\">statement<\/a> filed with the court in support of the bankruptcy petition stated that the company has seen foot traffic in its restaurants drop by nearly a third since 2019 and that its guest count had only \u201cmarginally improved\u201d since bottoming out during 2020 and 2021 <a href=\"https:\/\/www.westernjournal.com\/covid-lockdowns-exploded-alcohol-deaths-nearly-1-3-bureaucrats-blood-hands\/\" target=\"_blank\" rel=\"noopener\">lockdowns<\/a> and <a href=\"https:\/\/www.westernjournal.com\/watch-faucis-former-nih-boss-finally-admits-covid-lockdown-another-mistake-made\/\" target=\"_blank\" rel=\"noopener\">pandemic fears<\/a>.<\/p>\n<p>\u201cThe latest symptom of this decline is Red Lobster\u2019s $76 million net lost during fiscal year 2023,\u201d the court filing said.<\/p>\n<p>\u201cPerhaps the most prominent of the poor decisions was an \u2018endless shrimp\u2019 offering by a previous CEO that [current CEO Jonathan] Tibus said ultimately cost the company $11 million,\u201d according to <a href=\"https:\/\/www.nbcnews.com\/business\/business-news\/red-lobster-files-bankruptcy-rcna152437\" target=\"_blank\" rel=\"noopener\">NBC News<\/a>. \u201cThe circumstances that led to the promotion are under investigation, Tibus said.\u201d<\/p>\n<p>The presumptive buyer, however, had already guaranteed loans to the company of $100 million to continue operations and reorganize, the outlet\u00a0reported.<\/p>\n<div id=\"firefly-poll-container\">\n<p>Do you ever eat at Red Lobster?<\/p>\n<\/p><\/div>\n<p>The 56-year-old company announced last week that 99 of its locations would be closing in the near future and their equipment auctioned off, according to NBC.<\/p>\n<p>The number of <a href=\"https:\/\/www.westernjournal.com\/red-lobster-abruptly-closes-dozens-locations-largest-restaurant-liquidation-ever-underway\/\" target=\"_blank\" rel=\"noopener\">Red Lobster<\/a> restaurants has grown from one family-owned location in Lakeland, Florida, to over 700 worldwide today, according to the company\u2019s <a href=\"https:\/\/www.redlobster.com\/our-story\/our-history\/\" target=\"_blank\" rel=\"noopener\">website<\/a>.<\/p>\n<p>A copy of the company\u2019s bankruptcy petition is available <a href=\"https:\/\/document.epiq11.com\/document\/getdocumentsbydocket\/?docketId=1082805&#038;projectCode=RLR&#038;docketNumber=1&#038;source=DM\" target=\"_blank\" rel=\"noopener\">here<\/a>.<\/p>\n<p>The news release, edited slightly, can be read below, or in its original format <a href=\"https:\/\/www.prnewswire.com\/news-releases\/red-lobster-files-voluntary-chapter-11-petitions-to-strengthen-financial-position-and-maximize-value-for-stakeholders-302149769.html\" target=\"_blank\" rel=\"noopener\">here<\/a>.<\/p>\n<p><em>Red Lobster Management LLC, along with its direct and indirect operating subsidiaries (\u201cRed Lobster\u201d or \u201cthe Company\u201d), owner and operator of the Red Lobster\u00ae restaurant chain, today announced that the Company has voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Middle District of Florida. 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. As part of these filings, Red Lobster has entered into a stalking horse purchase agreement pursuant to which Red Lobster will sell its business to an entity formed and controlled by its existing term lenders.<\/em><\/p>\n<p><em>Red Lobster\u2019s restaurants will remain open and operating as usual during the Chapter 11 process, continuing to be the world\u2019s largest and most-loved seafood restaurant company. The Company has been working with vendors to ensure that operations are unaffected and has received a\u00a0$100 million\u00a0debtor-in-possession (\u201cDIP\u201d) financing commitment from its existing lenders.<\/em><\/p>\n<p><em>Jonathan Tibus, the Company\u2019s CEO, said \u201cThis restructuring is the best path forward for Red Lobster. It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth. The support we\u2019ve received from our lenders and vendors will help ensure that we can complete the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/red-lobster-files-for-bankruptcy-after-closing-several-locations-last-week\/\" title=\"Red Lobster declares bankruptcy following recent closures\">sale process quickly<\/a> and efficiently while remaining focused on our employees and guests.\u201d<\/em><\/p>\n<p><em>Court filings and information about the claims process can be found at a separate website maintained by Red Lobster\u2019s claims agent, https:\/\/dm.epiq11.com\/RedLobster,\u00a0or by calling Toll Free (U.S.&#038;\u00a0Canada): (888) 754-0507.<\/em><\/p>\n<p><em>King &#038; Spalding LLP, Berger Singerman LLP and Blake, Cassel &#038; Graydon, LLC are serving as legal advisors. Alvarez &#038;\u00a0Marsal is serving as financial advisor and providing corporate leadership as Chief Executive and Chief Restructuring Officers. Hilco Corporate Finance is serving as M&#038;A advisor to Red Lobster. Keen-Summit is serving as real estate advisor.<\/em><\/p>\n<hr>\n<div>\n<p><b><i>An Important Message from Our Staff:<\/i><\/b><\/p>\n<p><i><span>We who work here at The Western Journal have fought for years against Big Tech and the elites who want to shut us down and then shut America down. <\/span><\/i><\/p>\n<p><i><span>Make no mistake \u2014 nothing will be the same after November 2024. Will you help us fight? Will you <\/span><\/i><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>help us expose the America-hating elites<\/span><\/i><\/a><i><span>  who will do everything they can to steal this election? <\/span><\/i><\/p>\n<p><i><span>We\u2019re a small group of people fighting to save the country for our readers and for our own family and friends. <\/span><\/i><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>Can we count on your help?<\/span><\/i><\/a><\/p>\n<p><i><span>At this point, Big Tech has cut off our access to 90% of advertisers. Imagine if someone took 90% of your paycheck and there was nothing you could do. They\u2019re trying to starve us out.<\/span><\/i><\/p>\n<p><i><span>Donations from readers like you have literally helped keep our lights on, and <\/span><\/i><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>we need you<\/span><\/i><\/a><i><span>  now more than ever. <\/span><\/i><\/p>\n<p><i><span>We operate on a shoestring budget, but with that budget, we terrify the globalists. Please help us continue the fight. <\/span><\/i><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>Stand with us<\/span><\/i><\/a><i><span>, and we will never surrender.<\/span><\/i><\/p>\n<p><i><span>Thank you for reading The Western Journal and for believing in America. <\/span><\/i><\/p>\n<p><i><span>It is a pleasure to serve you.<\/span><\/i><\/p>\n<p><i><span>P.S. Please don\u2019t let the America-hating left win. <\/span><\/i><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>Stand with us today<\/span><\/i><\/a><i><span>!<\/span><\/i><\/p>\n<\/p><\/div>\n<div id=\"author-info-44802\">\n<p><a href=\"https:\/\/www.westernjournal.com\/author\/georgeupper\/\">  <\/a> <\/p>\n<div>\n<p><label for=\"summary-tab-radio-44802\">Summary<\/label><label for=\"more-info-tab-radio-44802\">More<span> Biographical Information<\/span><\/label><label for=\"posts-tab-radio-44802\">Recent<span> Posts<\/span><\/label><label for=\"contact-tab-radio-44802\" onclick=\"if( typeof grecaptcha=='undefined' ) { let cap_s=document.createElement( 'script' ); cap_s.src='https:\/\/www.google.com\/recaptcha\/api.js?render=6LeJFcsUAAAAAPsIEqvB1EebWbZfqRUe6ebMpGy7'; document.body.appendChild( cap_s ); }\">Contact<\/label><\/p>\n<div>\n<p>George Upper is the former Editor-in-Chief of The Western Journal and was a weekly co-host of &#8220;WJ Live,&#8221; powered by The Western Journal. He is currently a contributing editor in the areas of faith, politics and culture. A former U.S. Army special operator, teacher and consultant, he is a lifetime member of the NRA and an active volunteer leader in his church. Born in Foxborough, Massachusetts, he has lived most of his life in central North Carolina.<\/p>\n<\/p><\/div>\n<div>\n<p>  George Upper, is the former editor-in-chief of The Western Journal and is now a contributing editor in the areas of faith, politics and culture. He currently serves as the connections pastor at Awestruck Church in Greensboro, North Carolina. He is a former U.S. Army special operator, teacher, manager and consultant. Born in Massachusetts, he graduated from Foxborough High School before joining the Army and spending most of the next three years at Fort Bragg. He holds bachelor&#8217;s and master&#8217;s degrees in English as well as a Master&#8217;s in Business Administration, all from the University of North Carolina at Greensboro. He and his wife life only a short drive from his three children, their spouses and his grandchildren. He is a lifetime member of the NRA and in his spare time he shoots, reads a lot of Lawrence Block and John D. MacDonald, and watches Bruce Campbell movies. He is a fan of individual freedom, Tommy Bahama, fine-point G-2 pens and the Oxford comma. <\/p>\n<p>  Birthplace <\/p>\n<p>  Foxborough, Massachusetts <\/p>\n<p>  Nationality <\/p>\n<p>  American <\/p>\n<p>  Honors\/Awards <\/p>\n<p>  Beta Gamma Sigma <\/p>\n<p>  Education <\/p>\n<p>  B.A., English, UNCG; M.A., English, UNCG; MBA, UNCG <\/p>\n<p>  Location <\/p>\n<p>  North Carolina <\/p>\n<p>  Languages Spoken <\/p>\n<p>  English <\/p>\n<p>  Topics of Expertise <\/p>\n<p>  Faith, Business, Leadership and Management, Military, Politics <\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Red Lobster filed for Chapter 11 bankruptcy in Florida, as confirmed by court documents and company statements. Despite this move, the beloved cheddar bay biscuits aren&#8217;t going away just yet. The company reassures customers of its intention to continue operating<\/p>\n","protected":false},"author":2010,"featured_media":2248545,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/05\/people-eating-at-Red-Lobster.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-2248544","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/05\/people-eating-at-Red-Lobster.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2248544","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2010"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2248544"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2248544\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2248545"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2248544"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2248544"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2248544"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}