Red Lobster Shuts Down More Locations Amid Financial Struggles
Chapter 11 Bankruptcy Filed as Seafood Chain Faces Mounting Debt
Limited-Time Promotion Failure and Sale Attempts Add to Woes
Red Lobster, the well-known seafood restaurant chain, has been facing severe financial difficulties, leading to the closure of numerous locations. The company recently filed for Chapter 11 bankruptcy protection and has closed over 50 restaurants nationwide. The closures include one location in Greater Baltimore and four in Maryland.
Red Lobster's struggles are attributed to mounting debt and the failure of its "Endless Shrimp" promotional deal, which allowed guests to choose two types of shrimp and eat them nonstop. The promotion, which was popular in the past, did not perform as expected during its latest run.
In addition to the financial challenges, Red Lobster is also facing the potential sale of a 25% stake in the company to Thai Union, a seafood product supplier. The sale, which is part of a larger restructuring effort, has yet to be finalized.
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