Red Lobster to close more restaurants amid bankruptcy

Red Lobster is closing down another 23 locations amid its ongoing Chapter 11 bankruptcy.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange. Here's what we're watching on

00:03the street today. The Dow hovers near record highs as investors await earnings from NVIDIA

00:08and look ahead to the Federal Reserve's favorite inflation gauge known as the PCE Index.

00:13Investors are also digesting a pickup in consumer confidence,

00:17which jumped to a six-month high in August, according to the Conference Board.

00:22In other news, Red Lobster is shuttering even more locations as part of its bankruptcy process.

00:28Court records show the struggling casual dining chain will close an additional 23 locations

00:34on top of the more than 100 restaurants it shut earlier this summer. The process will

00:38leave Red Lobster with about 500 eateries down from 650 before the start of the year.

00:44The closures are spread across 15 states around the country.

00:49Once an iconic American brand, Red Lobster is now trying to right the ship

00:54after falling on hard times. Several missteps, including a money-losing,

00:58all-you-can-eat shrimp addition to the menu, blew an $11 million hole in the company's business.

01:04At the same time, like many in the restaurant business, the chain is struggling with higher

01:08food costs, labor shortages, and a budget-conscious consumer. As part of the bankruptcy reorganization,

01:15Red Lobster has put itself up for sale, secured a $100 million loan,

01:19and announced an industry veteran as its new CEO. Red Lobster filed for Chapter 11 bankruptcy

01:25in May.

01:27That'll do it for your daily briefing from the New York Stock Exchange.

01:29I'm Conway Gittins with the Street.