Consumer
Red Lobster Chain Goes Bankrupt After Unlimited Shrimp Deal
- ‘Ultimate Endless Shrimp’ promotion cost company $11 million
- Chain will hand control to its lenders as part of bankruptcy
The company had been showing signs of financial stress as its losses mounted.
Photographer: Eric Thayer/BloombergThis article is for subscribers only.
Seafood restaurant chain Red Lobster filed for bankruptcy, succumbing to onerous leases, high labor costs and a disastrous unlimited shrimp promotion.
The Orlando, Florida-based company filed for Chapter 11 protection on Sunday, listing assets and liabilities of $1 billion to $10 billion each in its bankruptcy petition. The filing allows the company to keep operating while it works out a plan to repay creditors.