Red Lobster has filed for Chapter 11 bankruptcy protection after closing over 50 locations across more than 20 states. The seafood chain has been struggling with rising lease and labor costs in recent years and promotions like its iconic all-you-can-eat shrimp deal that resulted in millions in losses due to overwhelming demand. Red Lobster CEO Jonathan Tibus, a corporate restructuring specialist, took over in March as the company sought bankruptcy protection. Thai Union Group, a minority investor and one of the world's largest seafood suppliers, announced plans earlier this year to exit its investment in Red Lobster due to the impacts of the pandemic and industry headwinds.
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00:00 It's Benzinga and here's what's on the block.
00:02 Red Lobster has filed for Chapter 11 bankruptcy protection after closing over 50 locations
00:07 across more than 20 states.
00:09 The seafood chain has been struggling with rising lease and labor costs in recent years
00:13 and promotions like its iconic "All You Can Eat" deal that resulted in millions in losses
00:19 due to overwhelming demand.
00:20 Red Lobster CEO Jonathan Tibbets, a corporate restructuring specialist, took over in March
00:25 as the company sought bankruptcy protection.
00:28 Thai union group A Minority Investor and one of the world's largest seafood suppliers
00:32 announced plans earlier this year to exit its investment in Red Lobster due to the impacts
00:36 of the pandemic and industry headwinds.
00:38 For all things money, visit Benzinga.com.
00:40 (upbeat music)