Red Lobster

Outside analysts worry about a looming $355 million loan Red Lobster has due next summer.

Red Lobster is facing the “most challenging time” in its history during the coronavirus pandemic, CEO Kim Lopdrup said, at the same time outside analysts worry about a looming $355 million loan the company has due next summer.

The privately held seafood chain of more than 700 restaurants has a $380 million term loan, with more than $355 million outstanding, reaching maturity next July, according to a June report from Moody’s, which earlier in the year cut the company’s credit rating to Caa1, defined as “poor.”

Upcoming financial events mean it is “critical to repair the balance sheet,” said John Gordon, a San Diego-based restaurant analyst.

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