Pink Lobster, a nationwide restaurant chain identified for its inexpensive seafood and cheddar bay biscuits, stated late Sunday that it has filed for Chapter 11 chapter safety.
In an announcement, Pink Lobster stated it plans to promote “considerably all” of its property. The corporate added that its roughly 650 eating places will stay open and working throughout the chapter course of.
“This restructuring is the most effective path ahead for Pink Lobster,” CEO Jonathan Tibus stated in an announcement. “It permits us to deal with a number of monetary and operational challenges and emerge stronger and re-focused on our development. The assist we have acquired from our lenders and distributors will assist make sure that we will full the sale course of rapidly and effectively whereas remaining targeted on our staff and friends.”
In Could, an organization that helps companies liquidate restaurant gear revealed that Pink Lobster deliberate to shut roughly 50 of tis eating places.
Pink Lobster’s roots date again to 1968, when the primary restaurant opened in Lakeland, Florida, as a family-owned institution below native restaurateur Invoice Darden. The restaurant ultimately expanded nationwide, permitting People from all corners of the U.S. to get pleasure from crab, shrimp, lobster and different seafood.
Pink Lobster has persistently misplaced cash for years. In 2023, the corporate noticed its monetary losses swell after increasing its well-known all-you-can-eat shrimp deal. However whereas buyer demand surged, Pink Lobster struggled to show a revenue whereas serving mounds of shellfish at a relatively bargain-basement value.
The chain is partially owned by Thailand seafood producer Thai Union, which first invested in Pink Lobster in 2016. In January, the corporate introduced plans to promote its stake, with CEO Thiraphong Chansiri saying the pandemic, larger rates of interest, and rising materials and labor prices have damage Pink Lobster’s monetary efficiency.
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