Red Lobster Officially Files For Bankruptcy

Red Lobster said it had received a $100 million financing commitment from its lender to fund ongoing operations.

Red Lobster officially decided to file for Chapter 11 bankruptcy.

The 56-year-old seafood chain is the largest of its kind in the U.S..

Founded in 1968, Red Lobster grew to nearly 700 locations by 2019, but failed to regain its footing after the pandemic. It was also said that it’s all-you-can-eat shrimp promotion resulted in heavy losses and contributed to a downfall.

Red Lobster has now agreed to sell its business to a new entity wholly owned and controlled by its lenders.

Before filing, the company attempted to take another route by closing nearly 100 locations around the country. However, along with the decision to file for Chapter 11, Red Lobster said it had received a $100 million financing commitment from its lender to fund ongoing operations. Therefore, its remaining restaurants will remain open during the bankruptcy process.