Red LobsterPhoto byAdobe Stock

Author’s Note

This article is based on corporate postings and accredited media reports. Linked information within this article is attributed to the following outlets: KTLA 5, CNN Business via Yahoo, RedLobster.com and The-Sun.com.

Introduction

I have written extensively about the Red Lobster seafood chain. In recent months, most of my articles have detailed financial issues related to individual store closures.

This morning has come confirmation that the chain has filed for Chapter 11 bankruptcy protection following an ill-fated unlimited shrimp promotion. According to KTLA 5, at least 48 locations will be imminently closing nationwide (conflicting reports have that figure as high as 80), including five in California. The company currently operates over 700 restaurants around the world, per the KTLA 5 report.

Liquidation of the locations' equipment was initiated last week.

Let us explore.

Red Lobster, 2024

In the last year, several high-profile Red Lobster locations permanently closed in the state of California, including a popular 32-year-old Oxnard restaurant last August over a lease issue, according to a September 4th, 2023 report from The-Sun.com.

As excerpted from the report: The restaurant, located around 55 miles from Los Angeles, had been a staple in the local area for more than three decades after it opened in 1991.

Per a May 20, 2024 CNN Business via Yahoo report, the company itself had been facing nearly insurmountable financial obstacles over the past several years, noting its recently concluded unlimited shrimp promotion only pushed the chain further into a deleterious state.

As for a current statistic, per the report: The company said it had more than $1 billion in debt and less than $30 million in cash on hand... It expects to continue to close restaurants in the meantime.

The company intends sell its business to lenders in exchange for financing to keep the remaining restaurants afloat.

As to the five California locations set to permanently close so far, the restaurants are in Torrance, San Diego, Redding, Sacramento and Rohnert Park, according to KTLA 5.

Conclusion

Though a Red Lobster bankruptcy has been long anticipated, the company's future remains unclear.

In the event of pertinent updates to this matter, I will share them here on NewsBreak.

Thank you for reading.