The seafood restaurant chain sunk financially after a flubbed promo.
A sign is posted on the exterior of a Red Lobster restaurant on April 17, 2024 in Rohnert Park, California.Red Lobster is in hot financial waters, attempting to stay afloat by eyeing Chapter 11 bankruptcy to restructure its debts after an, the restaurant is considering filing for Chapter 11 on the advice of law firm King & Spalding, which would allow the chain to stay open while dealing with its debt and help reevaluate long-term contracts and leases.
The outlet reported that Fortress Investment Group, one of Red Lobster's key lenders, is also involved in current debt negotiations. A waitress carries a tray a lobster kettle and a crab trio dish at a Red Lobster restaurant in Yonkers, New York, July 24, 2014.The chain recently added Jonathan Tibus as its new CEO. Tibus has worked with other restaurant chains to restructure their businesses through the Chapter 11 process, including Kona Grill, which filed for bankruptcy in 2019, and the fast foot chain Krystal, which filed for Chapter 11 protection in 2020.
Last year, Red Lobster reported $11 million in operating losses following its flubbed "Ultimate Endless Shrimp" deal, which backfired when it reeled in too many customers after the limited-time promo became a permanent menu fixture last June. The restaurant chain later reported $12.5 million in losses in the fourth quarter of 2023.
A sign is posted on the exterior of a Red Lobster restaurant on April 17, 2024 in Rohnert Park, California.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
My Son’s Getting Ready to Walk Home AlonePlus: Green Eggs & Ham, PANDAS, and a Red Lobster update.
Read more »
How Do Grades Help Us? A Teacher Weighs In.Plus: Red Lobster, hair tantrums, and low-budget birthdays.
Read more »
Red Lobster Reportedly Considering Bankruptcy to Relieve Financial PressuresRed Lobster is weighing a Chapter 11 bankruptcy filing to renegotiate leases, address long-term contracts, and reduce rising labor costs. The seafood restaurant chain is being advised by law firm King & Spalding on the matter.
Read more »
Red Lobster Reportedly Considering Filing for Bankruptcy, Jokes FlyRed Lobster is reportedly mulling over bankruptcy, and while this is far from the end for them as a business ... some online are certainly treating it that way, with jokes galore.
Read more »
Red Lobster Reportedly Heading to BankruptcyThe national seafood chain is said to be eyeing Chapter 11 bankruptcy in the coming days.
Read more »