What will happen to Red Lobster in Canada?

A lawyer representing Red Lobster’s Canadian operations says he will ask an Ontario court to recognize and enforce the restaurant chain’s Chapter 11 bankruptcy in the U.S.

In an email to The Canadian Press, Linc Rogers says he will bring an application to the Ontario Superior Court of Justice on behalf of the Canadian arm of the seafood restaurant on Tuesday.

Red Lobster Canada, Inc. is incorporated in Delaware but runs 27 restaurants in Canada and is listed as a “related debtor” in the U.S. bankruptcy protection proceedings.

Earlier this week, a court granted Red Lobster Canada a stay in proceedings, which prevents creditors from taking action against it.

Florida-based Red Lobster Management LLC says the 56-year-old chain will continue to operate as its Chapter 11 case evolves.

But it shuttered dozens of locations in the U.S. this month as it grappled with rising costs and more competition across the restaurant industry.

This report by The Canadian Press was first published May 25, 2024.

The Canadian Press