Red Lobster Canada to ask Ontario court to enforce U.S. bankruptcy protection proceedings

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Documents show the process could include selling the seafood restaurant chain’s Canadian assets

A lawyer for Red Lobster Canada, Inc. says he will ask an Ontario court today to recognize and enforce the chain’sLinc Rogers told The Canadian Press in an e-mail that he would make an application to the Ontario Superior Court of Justice on behalf of the beleaguered seafood restaurant chain’s Canadian operations Tuesday. He declined to comment further on Red Lobster’s future in Canada.

Red Lobster, which expanded to Canada in 1983, has 2,000 Canadian employees, who are mostly part-time, non-unionized and working at the chain’s 27 locations across Ontario, Alberta, Manitoba and Saskatchewan. Details of the chain’s Canadian footprint and performance are part of a filing made last week that convinced an Ontario court to grant the company a stay in proceedings, which prevents creditors from taking action against it.

Another filing from the company shows its annual customer count dropped by 30 per cent since 2019 and has only “marginally improved from pandemic levels.” The company said it is now investigating whether its former chief executive Paul Kenny and Thai Union, a seafood conglomerate with a stake in Red Lobster, encouraged marketing of the promotion that was so “excessive” it triggered “major shortages of shrimp with restaurants often going days or weeks without” the seafood.

Red Lobster did not respond to a request for comment on the filing or the future of its Canadian assets.

 

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