Restaurant chain Red Lobster has filed for Chapter 11 bankruptcy following the abrupt closure of more than 50 locations last week.

The company plans to drive operational improvements, simplify the business through a reduction in locations, and pursue a sale of its assets as a going concern.  

The firm has also entered into a ‘stalking horse’ purchase agreement pursuant to selling its business to an entity formed and controlled by its existing term lenders.

Red Lobster’s restaurants will remain open during the Chapter 11 process. The company has received a $100 million debtor-in-possession financing commitment from its existing lenders.

“This restructuring is the best path forward for Red Lobster,” said CEO Jonathan Tibus. “It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth.”

Founded in 1968 and headquartered in Orlando, Florida, Red Lobster has around 650 restaurants nationwide.

The company plans to reduce the number of locations and pursue a sale of its assets as a going concern.