Red Lobster Considers Chapter 11 Bankruptcy Amid Financial Struggles

The seafood chain is mulling over bankruptcy options to restructure debt and alleviate financial pressures from failed promotions and rising costs.

Red Lobster faces significant financial challenges following a failed 'Ultimate Endless Shrimp' promotion, leading to substantial operating losses.
The restaurant chain is advised by law firm King & Spalding on potential Chapter 11 bankruptcy filing to manage debts and renegotiate leases.
Recent financial reports highlight a $12.5 million operating loss in the fourth quarter of 2023, compounding previous financial setbacks.
Key stakeholders, including Fortress Investment Group, are involved in current debt negotiations, indicating serious considerations for restructuring.
Despite financial woes, Red Lobster continues to operate its locations and has not confirmed any plans for closures amid bankruptcy considerations.