Is Red Lobster going out of business? Here's what it means for Texas restaurants

Red Lobster, a popular seafood restaurant chain, has reportedly been considering filing for Chapter 11 bankruptcy, according to a report from Bloomberg .

This has spurred rumors of mass closures, though at this time, that seems unlikely.

The restaurant first opened in Florida over 50 years ago. El Paso has two Red Lobsters, one at 8401 Gateway Blvd. West, and a newer one at 1860 Joe Battle Blvd.

Chapter 11 bankruptcy is often referred to as "reorganization bankruptcy" and typically allows a business to stay open while it reorganizes funds to pay off existing debt over time.

At the time of writing, Red Lobster has not officially filed for bankruptcy.

Who owns Red Lobster?

Golden Gate Capital took over Orlando, Florida-based Red Lobster from Darden Restaurants through a leveraged buyout in 2014. Thai Union owned 25% of the chain before buying Golden Gate’s stake in 2020, according to a report from Yahoo Finance.

More: Quesadilla burger, corn in a cup, and Desert Oak flautas are new items at El Paso Chihuahuas

Source: Arizona Republic

This article originally appeared on El Paso Times: Is Red Lobster going out of business? Here's what it means for Texas restaurants