Red Lobster Weighs Chapter 11 Restructuring
America’s favorite seafood chain, Red Lobster, might be undergoing a major financial overhaul. According to a Bloomberg report, the company is considering filing for Chapter 11 bankruptcy as part of a restructuring plan. This move aims to tackle debt and potentially renegotiate leases and contracts.
The good news? Red Lobster restaurants would likely remain open during the restructuring process, allowing them to continue serving customers while negotiations happen behind the scenes. However, a final decision on the bankruptcy filing hasn’t been made yet.
Red Lobster’s ownership has changed hands several times since its founding in 1968. The chain has been under the control of companies like Darden Restaurants (Olive Garden, Longhorn Steakhouse) and Golden Gate Capital. Most recently, Thai Union, a seafood supplier, acquired Red Lobster in 2020.
While some promotions have been successful, like the limited-time “Endless Lobster Experience,” others haven’t been as smooth. Red Lobster’s popular $20 “Endless Shrimp” deal in November 2023 reportedly cost the company a significant amount ($11 million) and contributed to a rough financial quarter.
Looking ahead, the future of Red Lobster remains uncertain. Thai Union, the current owner, has expressed plans to exit its stake in the company. Whether a Chapter 11 filing is the answer or another solution emerges will determine the next chapter for this iconic seafood restaurant.
