From NBCUniversal: 2024-04-25 07:00:01

Seafood chain Red Lobster is facing financial troubles and seeking a buyer to avoid bankruptcy. The company is burdened by debt and costly leases, with a potential Chapter 11 filing on the horizon. Red Lobster’s leadership turnover and industry challenges have contributed to its struggles in recent years.

A firm showed interest in buying Red Lobster but a deal didn’t materialize, leaving the chain’s fate uncertain. Being tied to long-term leases makes it challenging to avoid bankruptcy outside of a sale. Red Lobster’s longstanding popularity has been overshadowed by financial woes and changing consumer preferences.

Red Lobster has faced difficulties with its “endless shrimp” promotion, leading to significant losses last year. The company has also struggled to navigate shifting consumer preferences and fierce competition in the casual-dining sector. Red Lobster’s financial challenges have been exacerbated by the COVID-19 pandemic and ongoing industry trends.



Read more at NBCUniversal: Red Lobster seeks a buyer as it looks to avoid bankruptcy filing