Red Lobster Files for Bankruptcy Amid Financial Turmoil

Corporate decisions and burdensome leases cited as key factors in the seafood chain's collapse.

Red Lobster's all-you-can-eat shrimp promotion led to significant financial losses.
Private equity and corporate ownership changes left the chain with heavy debt and high lease costs.
Thai Union's influence resulted in costly supply obligations that strained the company's finances.
The chain faced a 30% drop in guest counts post-pandemic and a 60% decline in operating earnings.
Red Lobster has closed over 50 locations and reported between $1 billion and $10 billion in debt.