Red Lobster Files Chapter 11 as Endless Shrimp Finally Catches Up to the Chain
The casual dining giant enters Chapter 11 protection to restructure debt, but dining rooms and gift card redemptions remain active for now.
By Foodie Pundit Newsroom - Published - Updated - Section: Closings Bankruptcies
Key points
- Red Lobster has officially entered Chapter 11 bankruptcy to reorganize debt and restructure store leases.
- Most remaining restaurant locations will continue regular operations and serve traditional menu items during court proceedings.
- Gift cards and loyalty program benefits are expected to be honored as usual in the immediate term.
- A costly endless shrimp promotion and rising seafood costs contributed significantly to recent financial losses.
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Sources and methodology
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