Ontario Court to Hear Red Lobster’s US Bankruptcy Case and Discuss Canadian Assets: Legal Documents

A lawyer representing Red Lobster Canada, Inc. plans to petition an Ontario court today to acknowledge and implement the chain’s U.S. bankruptcy protection proceedings. This could potentially involve the sale of Canadian assets, as indicated in the documents.

Linc Rogers, in an email to The Canadian Press, stated that he would submit an application to the Ontario Superior Court of Justice on behalf of Red Lobster’s Canadian operations on Tuesday. He refrained from providing further details regarding the chain’s future in Canada.

However, an affidavit filed on May 20 by the CEO of Red Lobster Management LLC reveals that the objective of the U.S. proceedings is to facilitate the sale of most, if not all, of the company’s assets, including those belonging to Red Lobster Canada.

“In light of an impending liquidity crisis and the inability to secure fresh capital, the board of directors of RL Group concluded that a sale to maximize value would be the most favorable course of action,” outlined Jonathan Tibus in the filing.

Established in Canada in 1983, Red Lobster employs approximately 2,000 Canadian workers, predominantly part-time and non-unionized, across its 27 locations in Ontario, Alberta, Manitoba, and Saskatchewan.

The company leases 26 properties in the country and owns two others in Ontario, including a site in Brantford and a location on The Queensway in Etobicoke.

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