Red Lobster files for bankruptcy days after closing nearly 50 restaurants

The seafood chain has been struggling with rising lease and labor costs in recent years and also promotions like its iconic all-you-can-eat shrimp deal that backfiredThe seafood chain has been struggling with rising lease and labor costs in recent years and also promotions like its iconicThe seafood restaurant chain said in a court filing late Sunday that it has more than 100,000 creditors and estimated assets between $1 billion and $10 billion.

The bankruptcy petition is signed by CEO Jonathan Tibus, a corporate restructuring specialist who took the top post at Red Lobster in March. off the equipment of over 50 Red Lobster locations that were recently closed. The store closures span across more than 20 states — reducing Red Lobster’s presence in cities like Denver, San Antonio, Indianapolis and Sacramento, California.

Maintaining stability at the Floriday chain has been problematic due to multiple ownership changes over its 56-year history. Earlier this year, Red Lobster co-owner Thai Union Group, one of the world’s largest seafood suppliers, announced its intention to exit its minority investment in the dining chain.Thai Union first invested in Red Lobster in 2016 and upped its stake in 2020.

For the first nine months of 2023, the Thailand company reported a $19 million share of loss from Red Lobster. Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weekly says it is closing nearly 50 of its restaurants in the U.S. Here’s a look at the most recent list of which locations will be closing.

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