Cheddar bay biscuits will continue to be served in Fairfax City — for now.
Red Lobster’s lone Fairfax restaurant, located at 10325 Fairfax Blvd, will remain open despite the company’s ongoing financial troubles.
“We’re not closing,” one employee told FFXnow yesterday (Wednesday).
The seafood chain proposed closing the Fairfax location, as well as more than 200 others nationwide, on the grounds that its continued operation is “likely to continue to drive losses,” according to a federal court filing.
Under the proposal, Red Lobster would reject the leases at the locations, thereby allowing the chain to “avoid the incurrence of continued rental obligations.”
The chain voluntarily filed for Chapter 11 bankruptcy protection in May, alleging more than $1 billion in debt.
“This restructuring is the best path forward for Red Lobster,” CEO Jonathan Tibus said in a statement. “It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth.”
Six other Red Lobster locations in Virginia, including the Alexandria restaurant (555 S Van Dorn Street), are also on the proposed chopping block. A federal bankruptcy court in Orlando, Florida, is scheduled to hold a sale hearing on Sept. 5.
