Red Lobster Officially Files for Chapter 11 Bankruptcy [Video]

It’s been a difficult spring for the restaurant business, which is still dealing with being turned upside down by the fiscally catastrophic events of the pandemic. And now, two high-profile companies have filed for bankruptcy, rattling everyone even further.

Orlando-based seafood chain Red Lobster filed for Chapter 11 bankruptcy on Monday in Florida. Meanwhile, Outfox, the parent company behind Chicago’s Foxtrot and Dom’s gourmet markets, sought Chapter 7 bankruptcy on May 14 in Delaware.

Chapter 11, which means that a company plans to reorganize and clean up its debt, often under the same leadership, may signal the potential for a new direction for Red Lobster. Meanwhile, when companies file for Chapter 7 bankruptcy, it often means the liquidation and sale of all assets. In Foxtrot’s case, its assets have recently been sold to an investment firm. (No one, it seems, was interested in buying Dom’s). 

Red Lobster’s bankruptcy filing included 166 pages of creditorsto whom it owes money. …