Red Lobster Management, along with its direct and indirect operating subsidiaries, owner and operator of the Red Lobster restaurant chain, has voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Middle District of Florida. The company intends to use the proceedings to 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.

As part of these filings, Red Lobster has entered into a stalking horse purchase agreement pursuant to which Red Lobster will sell its business to an entity formed and controlled by its existing term lenders.

Red Lobster’s restaurants will remain open and operating as usual during the Chapter 11 process. The company has been working with vendors to ensure that operations are unaffected and has received a $100 million debtor-in-possession (DIP) financing commitment from its existing lenders.

“This restructuring is the best path forward for Red Lobster,” Jonathan Tibus, CEO of Red Lobster, said. “It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth. The support we’ve received from our lenders and vendors will help ensure that we can complete the sale process quickly and efficiently while remaining focused on our employees and guests.”

King & Spalding, Berger Singerman and Blake, Cassel & Graydon are serving as legal advisors. Alvarez & Marsal is serving as financial advisor and providing corporate leadership as chief executive and chief restructuring Officers. Hilco Corporate Finance is serving as M&A advisor to Red Lobster. Keen-Summit is serving as real estate advisor.