Red Lobster files for Chapter 11 bankruptcy after suddenly closing 88 locations [Video]

Red Lobster filed for Chapter 11 bankruptcy after it announced it would be closing dozens of stores.

The seafood chain said that in order to stay financially afloat it would “reduce its locations” and sell off most of its assets, according to a press release from the company.

“This 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,” Red Lobster CEO Jonathan Tibus said in a statement.

Last week, Red Lobster abruptly shuttered more than 80 U.S. restaurants, including four locations in New Jersey.

According to the chain’s website, 88 restaurants in 27 states were listed as “temporarily closed.”

Red Lobster said Sunday evening that it would sell the business to a new entity owned by its lenders, and stressed that its restaurants would “remain open and operating as usual during the Chapter 11 process.”

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