Red Lobster Files for Bankruptcy, Closes Dozens of Locations

The seafood chain cites high rent costs, declining sales, and poor management decisions as key factors in its financial troubles.

Red Lobster has filed for Chapter 11 bankruptcy and closed 99 restaurants across 28 states.
The chain's 'Endless Shrimp' promotion contributed to losses but was not the primary cause of bankruptcy.
High rent from sale-leaseback agreements and declining sales were significant financial burdens.
Thai Union Group, a major stakeholder and seafood supplier, plans to exit its investment in Red Lobster.
The company aims to restructure and continue operating its remaining locations during the bankruptcy process.