- Red Lobster could file for Chapter 11 bankruptcy protection next week, per The Wall Street Journal.
- The restaurant chain, burdened with hundreds of millions in debt, recently shut down 52 stores.
- Red Lobster blamed some of its financial struggles on an all-you-can-eat shrimp promotion.
Restaurant chain Red Lobster could file for bankruptcy protection as early as next week, The Wall Street Journal reported on Tuesday.
People familiar with the matter told the Journal that the company, overwhelmed with hundreds of millions in debt, plans to file a Chapter 11 bankruptcy petition in Orlando before Memorial Day.
Bloomberg previously reported in April that the restaurant company was considering filing for Chapter 11 bankruptcy protection.
That sucks! There is one that I drive by regularly and if they close I won’t be able to refer to them as ‘Dead Mobster’.
Not a surprise though, they have gone downhill for decades.
I’m blown away that these sit doen chains are still hanging on. We would eat at Joe’s Crab Shack once a year for my brother and I’s birthday, but that was it. Never any Applebee’s, Red Robin, Ruby Tuesday, TGI Friday, Olive Garden, or any other. They cost more while not being as fun as local restaurants. Even local chains within a city or part of a state are infinitly better than national chains in my mind.
A lot of people continue to go out of habit, or because they are bland enough with a wide variety of choices that they work for groups of people with varying tastes. Local chains and restaurants tend to be more focused, which is also why they tend to be better and cheaper, which doesn’t work for a group that wants completely different things.
The variety is being lost since the costs are adding up, plus the cost savings from franchising and brand recognition aren’t as big of a deal as it was before the internet really took off and let local spots spread word of mouth more easily.