Red Lobster Canada included in company’s U.S. bankruptcy filing
Red Lobster’s restaurants in Canada may also be impacted by the U.S.-based company’s Chapter 11 bankruptcy filing submitted this week.
According to a filing with the Ontario Superior Court of Justice, Red Lobster Canada Inc., a Delaware-incorporated entity, was listed as one of the “debtors” in the filing from American parent corporation Red Lobster Management.
The filing also notes that an interim stay order was granted in favour of the debtors, which would apply to any of its “property, business and directors and officers.”
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A lawyer representing Red Lobster Canada confirmed the filing to Global News but declined to provide additional comment.
There are 27 active Red Lobster restaurants across Canada, according to its website, a majority of which are in Ontario.
On Sunday, Red Lobster said it had filed for protection in a Florida court after securing US$100 million in financing commitments from its existing lenders.
It said its restaurants will be open and operate as usual during the bankruptcy proceedings, but plans to reduce its locations and pursue a sale of substantially all of its assets.
Red Lobster operates about 700 locations around the world, according to its website.
— with files from The Associated Press