Days after Red Lobster filed for Chapter 11 bankruptcy and announced that it would close dozens of its seafood restaurants, the chain's Canadian counterpart will ask a provincial court to enforce the U.S. bankruptcy in Canada, CBC News has learned. Red Lobster Canada, Inc., a Delaware-incorporated company that owns and operates Red Lobster restaurants across Canada, was part of the Chapter 11 filing in the U.S. There is currently a stay in proceedings in place in Canada preventing any creditor from taking action in Canada against [Red Lobster] Canada and certain affiliated entities, Rogers wrote. Court filings showed that Red Lobster was investigating the role that seafood supplier Thai Union, which held a minority stake in the company, played in the promotion that caused $11 million US in losses. A spokesperson for Thai Union told CBC News last month that it had exited its investment in Red Lobster and would not comment further.

Source: CBC News May 23, 2024 19:08 UTC