Red Lobster Files For Chapter 11 Bankruptcy Protection

Bloomberg News reports:

Seafood restaurant chain Red Lobster filed for bankruptcy, succumbing to onerous leases, high labor costs and a disastrous unlimited shrimp promotion.

The Orlando, Florida-based company filed for Chapter 11 protection on Sunday, listing assets and liabilities of $1 billion to $10 billion each in its bankruptcy petition. The filing allows the company to keep operating while it works out a plan to repay creditors.

The restaurant chain had been deteriorating for several years, with diners down around 30% since 2019, Chief Executive Officer Jonathan Tibus wrote in court papers.

Read the full article. Last week the chain closed over 80 locations, including most stores in its hometown of Orlando.

Red Lobster, a pioneering restaurant that brought affordable seafood to middle-class America, files for bankruptcy https://t.co/MokfNvjc50

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