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Red Lobster Says Locations Will Stay Open After Filing For Bankruptcy. On May 19, Red Lobster confirmed in a statement that the company has filed for voluntary Chapter 11 bankruptcy in Florida. NBC reports that the largest seafood chain in the United States said that filing for Chapter 11 will , "drive operational improvements, simplify the business through a reduction in locations, and pursue a sale of substantially all of its assets as a going concern." In a so-called stalking horse arrangement, Red Lobster will sell the entire business to a new entity that is completely owned and controlled by lenders. According to the company, lenders have provided $100 million in financial commitments to fund the chain's ongoing operations. NBC reports that the company's bankruptcy petition lists Red Lobster's assets at a value between $1 billion and $10 billion. The chain stressed that despite closing around 99 locations across the U.S., remaining locations will remain open during the bankruptcy process. The company added that it has been , "working with vendors to ensure that operations are unaffected." "This restructuring is the best path forward for Red Lobster. It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth.", Jonathan Tibus, Red Lobster CEO, via NBC. The 56-year-old chain was founded back in 1968. By 2019, Red Lobster had expanded to include nearly 700 locations across the country. NBC reports that the company has struggled under a growing debt load after failing to regain a foothold following the COVID-19 pandemic. THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT