Red Lobster survives Chapter 11 bankruptcy under new ownership

Red Lobster

Red Lobster has emerged from Chapter 11 bankruptcy with new owners.AP

Red Lobster, the seafood chain known for its endless shrimp deals and cheddar bay biscuits, has emerged from Chapter 11 bankruptcy, according to the company.

A U.S. bankruptcy judge approved the motion at the beginning of the month, just four months after the company first filed for bankruptcy protection looking to sell the company.

The move to file for bankruptcy protection came after the company suffered big losses, including the $20 “endless shrimp” promotion that caused $11 million in losses.

The seafood chain said that in order to stay financially afloat it would “reduce its locations” and sell off most of its assets.

Red Lobster turned over a new leaf as a company by appointing a new CEO, Damola Adamolekun, former chief executive of P.F. Chang’s, as well as taking the company private.

Red Lobster currently operates 545 restaurants in 44 U.S. states. These include 12 locations across New Jersey.

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