Struggling restaurant chain Red Lobster is reportedly abruptly closing at least 48 of its outlets across the US amid warnings they may file for bankruptcy.
The chain has ‘temporarily closed’ locations in Buffalo, Orlando, Jacksonville and other cities, and is auctioning off kitchen equipment and furniture, according to CNN.
The brand is reportedly eyeing up a possible Chapter 11 filing to restructure its debt, allowing it to discard long-term contracts and renegotiate new leases.
Red Lobster’s cash flows have been hit by expensive leases and high labor costs.
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