Red Lobster moves closer to bankruptcy sale

Court documents filed July 23 show that Red Lobster is moving closer to a bankruptcy sale that would put lenders in charge of the restaurant chain, Reuters reported.

The company had planned to hold an auction Tuesday but said in the Monday filing it received no qualified bids.

Red Lobster filed for Chapter 11 bankruptcy in May with about $300 million in debt.

How many Red Lobster restaurants have closed?

Just prior to doing so, the company abruptly closed 93 U.S. locations, including at 655 Jefferson Road, Henrietta . Within days, online restaurant liquidator TAGeX began auctioning off the contents.

The only other Red Lobster in the Rochester market is at 1515 W. Ridge Road in Greece, which remains open.

The company did not immediately respond on Tuesday to a question from Reuters about how many locations would remain open after its bankruptcy.

Why did Red Lobster file for bankruptcy?

Red Lobster blamed its financial problems on inflation, unsustainable rent costs and poor management decisions, including an “endless shrimp” promotion that resulted in $11 million in losses.

This story includes reporting by Dietrich Knauth of Reuters.

Reporter Marcia Greenwood covers general assignments. Send story tips to mgreenwo@rocheste.gannett.com. Follow her on Twitter @MarciaGreenwood .

This article originally appeared on Rochester Democrat and Chronicle: Red Lobster moves closer to bankruptcy sale