Red Lobster Is Considering Bankruptcy and People Are Distraught Over It

They say there’s plenty of fish in the sea but at Red Lobster, their fishing nets are broke and empty.

The beloved seafood giant has just shocked the internet after announcing that they may file for bankruptcy.

According to sources who told Bloomberg, Red Lobster is considering a Chapter 11 bankruptcy filing, the same fate that officially made Bed Bath & Beyond close its doors for good.

With growing debt and finding difficulty in making money with their current leases and labor costs, the lobster joint is seeking advice from law firm King & Spalding to try and cut costs via Bloomberg.

Now Red Lobster hasn’t made an official decision yet on filing for bankruptcy or not, mentioned Bloomberg’s sources (so us fans can take a breath).

But it’s worth noting that in the fourth quarter of 2023, Red Lobster suffered a $12.5 million operating loss even while raising prices with its endless shrimp promotion, according to CNN.

It’s hard to hear, but Red Lobster had also reported an $11 million loss during the third quarter of 2023 as well.