SAD DAY at CHEDDAR BAY: Red Lobster Closes 50+ Locations Across the USA

Red Lobster announced Tuesday their plans to close more than 50 locations across the United States as the company weighs filing for bankruptcy.

Red Lobster has just closed 50 locations and is auctioning off the contents of those stores.

The seafood staple is the latest company to consider bankruptcy to try and restructure its debt and downsize.

Bidenomics continues to ravage America. pic.twitter.com/wGaZNKxbFQ

— Paul A. Szypula 🇺🇸 (@Bubblebathgirl) May 14, 2024

From Fox News:

According to a report by Bloomberg citing people familiar with the discussions, Red Lobster is weighing a Chapter 11 bankruptcy filing to renegotiate burdensome leases and address other long-term contracts as well as rising labor costs.

The outlet reported that the seafood restaurant chain is being advised by law firm King & Spalding on the subject, and that discussions about restructuring are ongoing, and no final decisions have been made about a bankruptcy filing.

By filing for Chapter 11 bankruptcy, the company could continue to operate while it works with creditors and investors to put in place a debt reduction plan that would allow it to head into the future on a better financial footing.