Expert Weighs in on Subway and Red Lobster News

4 Min Read By MRM Staff

The restaurant industry has dominated both the financial and front pages of late as Roark completed its acquisition of Subway and Red Lobster filed for bankruptcy."This transaction reflects Subway's long-term growth potential, and the substantial value of our brand and our franchisees around the world," said John Chidsey, CEO of Subway, adding that there are no anticipated changes to the company's leadership team, strategic focus or operating plans.

Red Lobster filed for relief under Chapter 11 of the Bankruptcy Code  andintends 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. 

Jonathan Tibus, the Company’s CEO, said restructuring allows the brand to address several financial and operational challenges and emerge stronger and re-focused on growth. Locations will remain open and operating as usual during the Chapter 11 process.

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