U.S.-based restaurant chain Red Lobster has filed for Chapter 11 bankruptcy protection in a Florida court after securing US$100 million in financing commitments from its existing lenders, the company said on Sunday.

The company listed its assets and liabilities to be between US$1 billion and US$10 billion, according to a court filing.

Red Lobster said its restaurants will be open and operate as usual during the bankruptcy proceedings, and plans to reduce its locations as well as pursue a sale of substantially all its assets.

1:17
Red Lobster’s ‘ultimate’ endless shrimp deal backfires, costing company millions

The restaurant chain also said it has entered into a “stalking horse” purchase agreement to sell its business to an entity formed and controlled by its existing term lenders.

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

Red Lobster has about 700 locations around the world, according to its website.

(Reporting by Harshita Meenaktshi in Bengaluru; Editing by Krishna Chandra Eluri)