Report: Red Lobster considering bankruptcy filing
Could endless shrimp be the end of Red Lobster?
According to a new report by , the seafood chain is mulling over filing for bankruptcy protection.
The outlet reports there are several reasons for the consideration, including costs of leases and labor.
Last June, Red Lobster announced that its 鈥淯ltimate Endless Shrimp鈥� deal would become a permanent menu item. Despite raising the initial price from $20, to $22 and to $25 across 2023, the popularity of the item and lack of new traffic factored directly into an $11 million operating loss for Red Lobster in the third quarter of 2023.
Bloomberg reports the chain hasn't yet decided if it's going to file for Chapter 11. If it does, that kind of bankruptcy filing would allow its restaurants to continue operating while the company restructures.
