Report: Red Lobster is preparing to declare for bankruptcy.

Red Lobster, a seafood company, is apparently ready to file for bankruptcy.  

According to Restaurant Business Online, citing a Bloomberg article, the company is considering filing for Chapter 11 bankruptcy to reorganize its debts.  

According to Restaurant Business, Jonathan Tibus, a managing director at restructuring firm Alvarez & Marsal, became the company's new CEO last month  

According to the site, the move has sparked speculation that Thai Union Group is ready to sell the brand.   

Tibus is the company's third CEO in the last two years.  

According to the publication, citing the Bloomberg article, Orlando-based Red Lobster is seeking counsel from legal firm King & Spalding to rid itself of long-term contracts and renegotiate leases.  

According to Restaurant Business Online, the seafood brand, which has over 650 sites across the United States, has struggled in recent years due to leadership issues and strategic errors.  

The company's financial difficulties were exacerbated by economic troubles that have affected the bulk of American enterprises since the start of the COVID-19 pandemic.  

Thai Union Group decided to part ways with Red Lobster and seek a buyer in January, according to the publication, which said that Red Lobster lost $33 million in 2022.  

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