Ticker: Red Lobster seeks bankruptcy protection days after closing dozens of restaurants; Senate report finds parts made with China’s forced labor in cars by BMW, Jaguar Land Rover and VW
Red Lobster, the casual dining chain that brought seafood to the masses with inventions like popcorn shrimp and “endless” seafood deals, has filed for Chapter 11 bankruptcy protection.
The 56-year-old chain made the filing late Sunday, days after shuttering dozens of restaurants.
“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,” CEO Jonathan Tibus said. Tibus, a corporate restructuring expert, took the top post at the chain in March.
Red Lobster said its 600 restaurants would continue to operate through the bankruptcy proceedings, which are intended to simplify operations, close locations and pursue a sale.
BMW, Jaguar Land Rover, VW bought Chinese parts
BMW, Jaguar Land Rover and Volkswagen have bought parts made by a Chinese company sanctioned under a 2021 law for using forced labor, a Senate inquiry found, prompting lawmakers to call for stricter enforcement.
The automakers responded to the Senate report, released Monday, by saying they have taken action to bring their cars into compliance with the law.
The investigation, carried out by the Senate Finance Committee over the past two years, discovered that BMW imported to the U.S. at least 8,000 MINI vehicles containing parts produced by JWD after the Chinese supplier was sanctioned in December for its links to China’s labor program in the far western region of Xinjiang.