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Red Lobster’s Canadian operations are moving to have the restaurant chain’s Chapter 11 bankruptcy in the United States recognized and enforced by an Ontario court, according to statements made by Linc Rogers, legal counsel representing the company.

In correspondence with The Canadian Press, Rogers indicated his intention to file an application with the Ontario Superior Court of Justice on behalf of Red Lobster Canada, Inc. Despite being incorporated in Delaware, the Canadian arm of the popular seafood restaurant manages 27 establishments across the country and is classified as a “related debtor” in the U.S. bankruptcy protection proceedings.

Recently, Red Lobster Canada was granted a stay in proceedings, a legal status that prevents creditors from initiating actions against the company. This development provides a temporary shield for Red Lobster Canada as it navigates through the complexities of the Chapter 11 bankruptcy process in the United States.

Red Lobster Management LLC, based in Florida, has assured that despite its ongoing Chapter 11 case, the 56-year-old chain will maintain operations. However, the company has faced challenges in the U.S. market, resulting in the closure of numerous locations this month due to mounting costs and intensified competition within the restaurant industry.

The decision to seek recognition of the U.S. bankruptcy proceedings in Canada underscores Red Lobster’s commitment to reorganizing its financial obligations and ensuring the long-term sustainability of its operations both domestically and internationally. This legal strategy aims to protect the interests of Red Lobster Canada’s stakeholders while aligning with the broader restructuring efforts being pursued by the restaurant chain’s management in the United States.