Purple Lobster has filed for Chapter 11 individual bankruptcy.

The struggling seafood chain, late Sunday, introduced the filing as very well as programs to sell its business to an entity that is controlled by its current loan providers. Eating places will keep on being open up and keep on regular operations, while more than 50 areas were being shut down previous week.

“This restructuring is the finest route forward for Purple Lobster,” reported CEO Jonathan Tibus in a statement. “It will allow us to handle several economic and operational worries and arise more powerful and refocused on our progress. The aid we’ve been given from our loan providers and suppliers will support assure that we can comprehensive the sale process speedily and competently even though remaining focused on our personnel and attendees.”

The company mentioned it has acquired a dedication of $100 million in financing from present creditors to be certain operations keep on.

Crimson Lobster has witnessed a collection of problems in the earlier year, from minimized site visitors as diners pulled back from soaring selling prices at dining places to very poor enterprise conclusions. Previous calendar year, Crimson Lobster noticed a massive reduction in its third-quarter earnings right after it expanded its Unlimited Shrimp marketing to an everyday celebration, fairly than its common Mondays-only featuring. Costs were being bigger, but so lots of people today took gain of the deal—and some to a gluttonous extreme—that earnings tumbled.

Previous week, the organization abruptly closed practically 50 eating places, 7% of its national footprint, placing up all of the contents for speedy auction. Places across 21 states ended up impacted by the shutdowns. The corporation even now has around 600 locations nationwide.

Pink Lobster’s bankruptcy was commonly predicted supplied the closures. It’s a person of various chains that have both looked for a customer or declared personal bankruptcy in the very last few months. Others include Tex-Mex franchise Tijuana Flats and Florida’s Brocato’s Sandwich Shop.

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