US restaurant chain Red Lobster has hired credit adviser Guggenheim as it deals with the ongoing COVID-19 pandemic hindering foodservice and the fallout from a Moody's credit downgrade earlier this year.

Red Lobster is exploring strategic options after facing “unprecedented challenges resulting from the COVID-19 pandemic," according to FSR Magazine.

In a June 3 credit opinion, Moody's noted Red Lobster benefited from its adequate liquidity position with significant cash balances that plug any near-term cash-burn deficits, the restaurant news site reported.