Red Lobster Reportedly Considering Bankruptcy

For the love of biscuits, go to Red Lobster to save it from filing bankruptcy! The popular seafood chain we know and love is going through a rough patch, especially after losing more than $11 million during its Ultimate Endless Shrimp promotion.

Reportedly, Red Lobster is contemplating filing for Chapter 11 bankruptcy, as disclosed by sources at Bloomberg. The move aims to reevaluate onerous leases, tackle long-term contracts, and navigate the challenges posed by escalating labor costs.

Filing for Chapter 11 bankruptcy means the company can keep running (yay) for the foreseeable future of Cheddar Bay Biscuits. The seafood chain will team up with creditors and investors to come up with a plan to lower their debt, hoping to set a solid financial foundation for the future.

So, did the $20 Ultimate Endless Shrimp promotion really put the company in jeopardy? Not solely, but it did contribute to it. And when former CEO Kelli Valade resigned in 2022 after just eight months on the job, that was a major red flag.

Reddit fans are also taking to the platform to share their disappointment in the news noting, “Stay open and risk it for the biscuit,” and “They have to do this now? Lobsterfest just freaking started!” We hear you, Reddit users!