Red Lobster Files for Chapter 11 Bankruptcy amid Struggles and Closures

Red Lobster, the beloved seafood chain known for its Cheddar Bay Biscuits and endless shrimp promotions, has found itself in hot water as it filed for Chapter 11 bankruptcy. The struggling restaurant announced its plans to sell its business to its existing lenders in an effort to restructure and emerge stronger.

CEO Jonathan Tibus expressed optimism about the restructuring, stating that it is the best path forward for Red Lobster. With the support of lenders and vendors, the company aims to complete the sale process quickly and efficiently while prioritizing its employees and guests. The commitment of $100 million in financing from existing lenders will ensure that operations continue without interruption.

Red Lobster has faced a series of challenges in the past year, from declining traffic due to rising prices to poor business decisions. The decision to expand the Endless Shrimp promotion to an everyday event backfired, leading to a significant loss in earnings. The recent closure of nearly 50 restaurants across 21 states further highlighted the chain’s struggles.

The bankruptcy filing was not entirely unexpected, as other restaurant chains have faced similar challenges in recent months. However, Red Lobster remains optimistic about its future and is focused on growth and refocusing its operations.

As Red Lobster navigates this difficult period, fans of the chain can rest assured that their favorite seafood dishes will still be available at the remaining locations. With a renewed focus on financial and operational stability, Red Lobster is determined to weather the storm and emerge stronger than ever.

For more information on Red Lobster’s bankruptcy filing, visit Fortune.com.