Red Lobster is reportedly weighing a possible Chapter 11 bankruptcy filing in order to restructure its mounting debt.
The seafood restaurant chain — which has 649 locations nationwide — has sought advice from law firm King & Spalding on how to shed some long-term contracts and renegotiate a chunk of its leases, people with knowledge of the matter told Bloomberg.
Red Lobster’s funds have taken a hit in recent months by strenuous leases and rising labor costs, among other issues, said the people, who spoke on condition of anonymity, per Bloomberg.
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