The Times Square Red Lobster will be offering free all-you-can-eat lobster to a select few customers on March 28.Richard Levine | Corbis News | Getty ImagesBeleaguered seafood chain Red Lobster is seeking a buyer as it looks to avoid filing for bankruptcy, CNBC has learned. The company has considered filing for bankruptcy to help it restructure its debt and get out of a number of costly and lengthy leases, but it’s also sought a buyer in recent months, people familiar with the matter told CNBC. At least one firm had been interested in buying the chain, but a deal never came to fruition.It’s unclear how the chain will ultimately resolve its financial woes. Red Lobster could secure a buyer, it could declare bankruptcy or its lenders could take control of the company.Even if Red Lobster finds a buyer, it would be hard for it to avoid filing for Chapter 11 as it is trying to get out of many leases and those contracts can be difficult to break outside of bankruptcy, the people said. Bloomberg first reported that Red Lobster was mulling a Chapter 11 filing last week. Red Lobster didn’t return a request for comment. The longtime chain, known for its cheddar bay biscuits and unlimited shrimp, is looking for a new home at a time when capital is expensive and large restaurant groups are feeling cautious as the broader casual-dining segment lags.For the past decade amidst ownership changes, Red Lobster has taken on debt and entered into a number of long-term leases across its 700-plus locations, which have weighed on its balance sheet. Jonathan Tibus, a managing partner with advisory firm Alvarez & Marsal, was recently appointed Red Lobster CEO after numerous C-suite departures. That turnover has made it difficult for the chain to implement a turnaround. The restructuring expert has decades of experience working with struggling restaurant chains, but many of them were smaller than Red Lobster. Tibus didn’t ret …
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[mwai_chat context=”Let’s have a discussion about this article:nnThe Times Square Red Lobster will be offering free all-you-can-eat lobster to a select few customers on March 28.Richard Levine | Corbis News | Getty ImagesBeleaguered seafood chain Red Lobster is seeking a buyer as it looks to avoid filing for bankruptcy, CNBC has learned. The company has considered filing for bankruptcy to help it restructure its debt and get out of a number of costly and lengthy leases, but it’s also sought a buyer in recent months, people familiar with the matter told CNBC. At least one firm had been interested in buying the chain, but a deal never came to fruition.It’s unclear how the chain will ultimately resolve its financial woes. Red Lobster could secure a buyer, it could declare bankruptcy or its lenders could take control of the company.Even if Red Lobster finds a buyer, it would be hard for it to avoid filing for Chapter 11 as it is trying to get out of many leases and those contracts can be difficult to break outside of bankruptcy, the people said. Bloomberg first reported that Red Lobster was mulling a Chapter 11 filing last week. Red Lobster didn’t return a request for comment. The longtime chain, known for its cheddar bay biscuits and unlimited shrimp, is looking for a new home at a time when capital is expensive and large restaurant groups are feeling cautious as the broader casual-dining segment lags.For the past decade amidst ownership changes, Red Lobster has taken on debt and entered into a number of long-term leases across its 700-plus locations, which have weighed on its balance sheet. Jonathan Tibus, a managing partner with advisory firm Alvarez & Marsal, was recently appointed Red Lobster CEO after numerous C-suite departures. That turnover has made it difficult for the chain to implement a turnaround. The restructuring expert has decades of experience working with struggling restaurant chains, but many of them were smaller than Red Lobster. Tibus didn’t ret …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
