Red Lobster gets room to breathe

Ontario judge orders bankruptcy protection for chain

- TARA DESCHAMPS

An Ontario judge recognized Red Lobster’s U.S. bankruptcy proceedings on Tuesday, protecting the chain from creditors as and it contemplates its future, which could involve selling off some or all of the company’s Canadian assets.

An Ontario judge says he will issue an order Tuesday that recognizes and enforces Red Lobster’s U.S. bankruptcy protection proceedings in Canada.

The order from judge Michael Penny was requested by lawyers for the beleaguered seafood restaurant chain’s Canadian business, who told a virtual court their client is working to steady its operations.

“Everything we are trying to do today is to stabilize the business,” said Linc Rogers, a lawyer representing Red Lobster Canada, Inc.