Dozens of Red Lobster locations are closing across as the country amid the company filing for Chapter 11 bankruptcy.

The filing, which was done earlier this week, allows the company to stay open while it reorganizes funds to pay off existing debt.

In a company statement, a representative said, “it intends to use the proceedings to drive operational improvements, simplify the business through a reduction in locations, and pursue a sale of substantially all of its assets as a going concern. As part of these filings, Red Lobster has entered into a stalking horse purchase agreement pursuant to which Red Lobster will sell its business to an entity formed and controlled by its existing term lenders.”

What does Red Lobster’s bankruptcy mean for Brevard’s two locations?

Brevard has two Red Lobster locations – Merritt Island and Melbourne, both of which remain currently open.

There’s been no indication from Red Lobster officials if more restaurants will close in the near future.

The company started closing locations earlier this month. So far, about 16 Red Lobster restaurants in Florida have closed.

The Brevard restaurants are located at:

• 215 E. Merritt Island Causeway, Merritt Island

• 2355 W. New Haven Ave., Melbourne

Who founded Red Lobster?

Red Lobster was founded in 1968 in Lakeland, Florida, by Bill Darden and Charley Woodsby.

General Mills acquired the company in 1970 and helped it expand into North America, before establishing a new company for its restaurant brands called Darden Restaurants Inc. in 1995. Darden also owned the Italian restaurant chain, Olive Garden.

Almost 20 years later, Darden Restaurants sold Red Lobster to Golden Gate Capital in 2014. Thai Union, which previously had a one-fourth stake in the company, bought out Golden Gate’s stake in the company in 2020.

Who owns Red Lobster?

This year, Thai Union Group revealed that it intended to exit its minority investment in Red Lobster.

“The combination of Covid-19 pandemic, sustained industry headwinds, higher interest rates and rising material and labor costs have impacted Red Lobster, resulting in prolonged negative financial contributions to Thai Union and its shareholders,” Thiraphong Chansiri, Thai Union Group’s CEO, said in a news release.

Red Lobster brought in Jonathan Tibus as its new CEO recently, according to Fox Business.

This article originally appeared on Florida Today: Brevard has 2 Red Lobsters – are they still open amid bankruptcy?