Red Lobster has filed for Chapter 11 bankruptcy protection, continuing the process to shrink its footprint and find a buyer, the company said in a statement.
In a court filing, Tibus blamed"difficult macroeconomic environment, a bloated and underperforming restaurant footprint, failed or ill-advised strategic initiatives, and increased competition within the restaurant industry" for the chain's need to file for Chapter 11 protection.Orlando-based Red Lobster has assets between $1 billion and $10 billion and estimated liabilities of $1 billion to $10 billion, according to the bankruptcy filing.
The company's longtime CEO Kim Lopdrup also retired in 2021, beginning a revolving door of CEOs that left the chain with little stability to turn around the flailing business. Tibus is Red Lobster's third chief executive in as many years.
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