Red Lobster, a chain of restaurants, announced on Sunday that it had filed for Chapter 11 bankruptcy. The announcement came after a” all you can eat” offer reportedly caused financial difficulties.
NBC News reported Monday that the restaurant explained it would  , “drive operational changes, improve the company through a reduction in places, and do a price of substantially all of its assets as a going problem”.
After receiving a$ 100 million financing commitment from them, the company intends to sell the business to an entity owned by its lenders in order to maintain operations.
Red Lobster just announced it would shut down 100 areas nationwide. It listed Alabama, Colorado, Georgia, California, and Florida as some of those being closed, according to a Breitbart News post published Tuesday:
CEO and Founder of TAGeX Brands, Neal Sherman, announced in a , post , on LinkedIn on Monday that his business would be hosting” the largest restaurant bankruptcy” through an online bidding. The TAGex , website , listed bids for 48 Red Lobster areas throughout the U. S. that had been closed and would be auctioning off kitchen things and equipment from the spots.
Red Lobster sites in , La Crosse, Wisconsin,  , Watertown, New York, Gaithersburg, Maryland, and Bloomingdale and Danville, Illinois, were among the franchises that were , closed.
The company added that as the bankruptcy process progresses, the locations that have n’t been shut down will remain open.
” Founded in 1968, Red Lobster grew to roughly 700 areas by 2019. However, it was unable to restore its standing following the epidemic. Between 2019 and 2023, U. S. sales fell 13 % on internet. Since then, the privately held company has struggled due to its bill insert, as well as having vendor payments hampered, it noted:” The privately held company has since struggled under its bill pile.
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According to Breitbart News, Red Lobster was reportedly considering bankruptcy in April after its all-you-can-eat shrimp offering resulted in a$ 11 million loss in 2023.
The company’s$ 20 crab campaign came after it lost$ 5.4 million in the second quarter of 2023, but because of how poorly received the deal was with customers, it miserably failed to increase profits, according to the outlet.
According to Inside Edition, one woman claimed her goal was to take 65 of the shrimp in one sitting while watching video footage of citizens eating plate after plate of them.
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However, a writer for the shop noticed that the all-you-can-eat crab offer was only available on Mondays when he visited a Red Lobster in New York City.
