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Red Lobster tries to keep restaurants open while creditors keep coming forward

Red Lobster tries to keep restaurants open while creditors keep coming forward
Red Lobster tries to keep restaurants open while creditors keep coming forward

After the restaurant chain Red Lobster had to close over 100 branches following the announcement of its bankruptcy, it now hopes to successfully negotiate lease agreements for several other locations that are on the verge of closure.

At a creditors’ meeting on June 28, Red Lobster CEO Jonathan Tibus said the chain would close several more restaurants because negotiations with landlords over the locations’ leases had failed.

Red Lobster, which opened on January 1. 20 Maynow operates 570 restaurants worldwide, compared to the 686 it previously operated. As part of its bankruptcy proceedings, Red Lobster released a list of another 120 stores it is considering for possible closure. However, Tibus said its The goal is to keep as many of the chain’s remaining restaurants open as possible.

“We have successfully negotiated with the landlords and removed some from the list,” Tibus said, adding that management continues to negotiate lease terms with other landlords and “hopes for successful negotiations with all landlords.”

“I don’t think it’s a likely option, but I hope so,” he said.

Ultimately, however, it will be decided which restaurants have to be closed, The final buyer of Red LobsterTibus said. If the buyer has a different business plan than current management, the chain could be forced to close more restaurants, he said.

“We are pushing all landlords to make savings; we are putting even more pressure on some because they are poorly performing locations,” Tibus said.

As part of a recent court case, the claims of Red Lobster’s unsecured seafood creditors were also released.

These creditors include…