Red Lobster said it plans to file for bankruptcy next week. Restaurants that can be auctioned off

According to what the Wall Street Journal reported as a story from a person familiar with the situation, there is a high possibility that Red Lobster, which has debts, will file bankruptcy next week, and it is said that about 99 stores have been closed.

According to the report, the seafood restaurant chain plans to use bankruptcy procedures to reach an agreement with creditors and conduct concession negotiations from landlords.

Neil Sherman, the chief executive officer (CEO) of the clearing company TagEx Brands, stated on LinkedIn that the company is leading the largest restaurant liquidation ever through the online auction market and is auctioning off more than 50 stores and their equipment.

Red Lobster has been struggling with management difficulties for some time due to a decrease in customer traffic due to the novel coronavirus infection pandemic, rising interest rates and leasing costs, and rising material costs and labor costs. The company's predicament was driven down by a failure to expand the all-you-can-eat shrimp promotion last year, and it is said that operating losses in the third quarter reached 11 million dollars.

The seafood-based food manufacturing company Thai Union Group (OTCPK: TUFBY), which acquired a minority share of Red Lobster in 2020, announced earlier this year that it would withdraw from the chain due to “long-term negative financial contributions,” and impaired 530 million dollars.