[MarketBeat] "Bankruptcy is a word that is often misunderstood. Filing for bankruptcy does not mean we are going out of business," Red Lobster wrote. "In fact, it means just the opposite. It is a legal process that allows us to make changes to our business and our cost structure so that Red Lobster can continue as a stronger company going forward."
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Chapter 11 is for reorganization. Chapter 7 is for liquidation.
Part of Red Lobster's problem is the 'all the shrimp you can eat for $20' special since a lot of people can eat a lot of shrimp. |