Red Lobster is reportedly considering filing for Chapter 11 bankruptcy.
The seafood restaurant chain has allegedly been getting advice from law firm King & Spalding, according to the article.
The Epoch Times reached out to Red Lobster but did not hear back by publication time.
However, the news comes after the company’s strategic partner, Thai Union Group PCL, announced it was looking to get out of its investment in Red Lobster.
“The combination of COVID-19 pandemic, sustained industry headwinds, higher interest rates, and rising material and labor costs have impacted Red Lobster, resulting in prolonged negative financial contributions to Thai Union and its shareholders,” said Thiraphong Chansiri, Thai Union Group’s CEO.
He said his company believes that Red Lobster’s financial requirements “no longer align” with Thai Union’s priorities.
In the first nine months of 2023, Thai Union lost US$19 million from its Red Lobsters investment, the release said.
In September 2023, the company announced that Horace Dawson would be taking on the role of chief executive officer. He has been with the company since 2014 in various positions, including executive vice president and general counsel.
At the time, Mr. Dawson acknowledged the challenges ahead of him.