Red Lobster Files for Chapter 11 Bankruptcy After Closing Dozens of Locations

The seafood chain aims to restructure debt and simplify operations while keeping restaurants open during proceedings.

Red Lobster plans to sell its business to an entity formed by its lenders.
The chain has faced financial struggles for over two decades, exacerbated by recent promotions and the pandemic.
More than 50 locations across 27 states have been closed recently.
The company owes between $1 billion and $10 billion, with over 100,000 creditors.
Red Lobster's 'Ultimate Endless Shrimp' deal significantly contributed to its financial losses.