Rumor has it that Red Lobster is getting ready to declare bankruptcy. 

 Ormond Beach, Florida (WKRC) — Reportedly, the seafood restaurant Red Lobster is getting ready to declare bankruptcy.  

 The company is reportedly contemplating a Chapter 11 bankruptcy filing in order to reorganize its debt, as reported by Restaurant Business Online, who cited a Bloomberg article.  

 Jonathan Tibus, a managing director at the restructuring firm Alvarez & Marsal, was appointed as the new chief executive officer (CEO) of the company last month, according to Restaurant Business  

According to the source, the change in leadership has sparked rumors that Thai Union Group is getting ready to sell the brand. This comes after Tibus became the third CEO for the company in the previous two years.  

The news site cites a Bloomberg report that states Orlando-based Red Lobster is consulting with King & Spalding about renegotiating leases and selling off long-term contracts. 

The 650-plus restaurant seafood brand has reportedly been under the weather for the past few years owing to leadership issues and strategic blunders, according to Restaurant Business Online.  

 The economic downturn that has hit most American companies since the COVID-19 outbreak started has only made the company's financial problems worse.  

According to the source, Thai Union Group decided in January to seek a buyer for Red Lobster after the company lost $33 million in 2022.  

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