Red Lobster Canada Included in U.S. Parent Company's Bankruptcy Filing

Red Lobster’s Chapter 11 bankruptcy filing in the United States has raised concerns about the impact on its Canadian operations. Red Lobster Canada Inc., a subsidiary of the American parent corporation Red Lobster Management, was listed as one of the debtors in the filing submitted to the Ontario Superior Court of Justice.

The filing includes an interim stay order in favor of the debtors, affecting their property, business operations, and directors and officers. While a lawyer representing Red Lobster Canada confirmed the filing, further details were not provided.

With 27 active Red Lobster restaurants across Canada, primarily concentrated in Ontario but also present in cities like Edmonton, Calgary, Saskatoon, Regina, and Winnipeg, the potential repercussions of the bankruptcy proceedings are significant.

Red Lobster’s announcement of bankruptcy protection in a Florida court came after securing $100 million in financing commitments from existing lenders. Despite the bankruptcy, the company assured that its restaurants would continue to operate normally, although it plans to reduce its locations and explore a sale of its assets.

With approximately 700 locations worldwide, Red Lobster’s bankruptcy filing has implications not only for its Canadian outlets but also for its global presence.