Red Lobster is considering filing for bankruptcy, report says

(Gray News) – Red Lobster is considering filing for bankruptcy, according to a report from Bloomberg on Tuesday.

Red Lobster is looking to restructure its debt, the report said, and may file for bankruptcy.

The restaurant chain has been struggling to keep up with lease and labor costs, according to Bloomberg.

But Red Lobster recently faced other financial troubles, too.

In November, a report from CNN said the company lost roughly $11 million during the third quarter of 2023 because of its all-you-can-eat shrimp promotion.

Red Lobster made endless shrimp a permanent menu item in June 2023.

At the time, it only cost $20. In November, the company said it would be raising the price to $25 because more people are taking advantage of the promotion than they expected.

Bloomberg reported that a final decision on filing for bankruptcy hadn’t been made, but that Red Lobster is meeting with lawyers for guidance.

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