What lies ahead for Red Lobster in Canada?

A legal representative for Red Lobster’s Canadian operations has announced plans to petition an Ontario court for recognition and enforcement of the restaurant chain’s Chapter 11 bankruptcy filed in the United States.

Linc Rogers, in correspondence with The Canadian Press, disclosed intentions to file an application with the Ontario Superior Court of Justice on behalf of Red Lobster Canada, Inc, which operates 27 restaurants across Canada. Although incorporated in Delaware, the Canadian arm is deemed a “related debtor” in the U.S. bankruptcy proceedings. Recently, a court issued a stay in proceedings for Red Lobster Canada, safeguarding it against creditor actions.

Red Lobster Management LLC, headquartered in Florida, assures that the 56-year-old chain will remain operational throughout the evolution of its Chapter 11 case. However, amidst escalating costs and heightened competition within the restaurant sector, the company closed numerous establishments across the United States this month.