Red Lobster not going out of business despite bankruptcy, company tells customers
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Red Lobster sought to reassure customers that it will not be going out of business despite filing for Chapter 11 bankruptcy.
The company issued a statement on Tuesday acknowledging its current financial hardships and stressing that a legal restructuring will allow it to strengthen its surviving restaurant locations.
«Bankruptcy is a word that is often misunderstood,» Red Lobster's communications team said in the statement posted to social media. «Filing for bankruptcy does not mean we are going out of business. In fact, it means just the opposite. It is a legal process that allows us to make changes to our business and our cost structure so that Red Lobster can continue as a stronger company going forward.»
The statement continued, «As many of you know, we recently made the tough decision to close a number of our restaurants. The truth is, some of the world's most beloved brands like Delta and Hertz have used this same process to protect their futures and their customers stood with them and rooted them on. And because of that, they emerged stronger.»
RED LOBSTER FILES FOR BANKRUPTCY: BLAME FOCUSES ON SHRIMP DEAL
A Red Lobster restaurant location is seen in Leesburg, Florida. (Stephen M. Dowell/Orlando Sentinel/Tribune News Service via Getty Images / Getty Images)
An announcement earlier this month indicated the company would be «auctioning off 50+ locations across the country.»
Restaurant liquidation company TageX Brands announced it would be overseeing the sale of equipment at the various closing locations, calling the situation its «largest restaurant equipment auction ever.» Only 48 locations were specifically listed in its catalog.
Red Lobster filed for Chapter 11
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