SEAFOOD chain Red Lobster is bankrupt — and going out of its way to explain exactly what that means. While the chain will close some locations, it took to social media to tell fans it's not going belly up. The company filed Chapter 11 bankruptcy late Sunday, revealing it had $1 billion in debt.
The legal process of bankruptcy will help the chain sell some of its assets to repay debts. That means selling restaurant properties. While it remains unclear how many locations will close, company executives have said Red Lobster’s footprint is “bloated.
” 52 locations are set to close shortly, according to CBS , though no official number has been confirmed. Now, Red Lobster is playing offense, reaching out to customers via Facebook to reassure fans the company isn’t going under. On Tuesday, Red Lobster shared a statement explaining to customers that the company would survive bankruptcy.
“Together, we have a lot worth rooting for,” it said. “We are here and ready to continue making memories with you.” Over 50,000 people reacted to the post, which now has about 10,000 comments.
“Our family loves Red Lobster,” one customer commented. “Many birthdays and Mother’s Day celebrations have happened there! Thanks for the transparency. We are rooting for you!” The chain responded to several comments, including this one.
“We will always be here for you,” the company replied. “Your celebrations are our celebrations, and we could not be more grateful for your suppo.
