Red Lobster is fishing for a way to get out of its financial woes after its endless shrimp campaign tanked its bottom line.
The seafood restaurant is looking to file for Chapter 11 bankruptcy in an effort to restructure its debts, Good Morning America reported.
“According Bloomberg, the restaurant is considering filing for Chapter 11 on the advice of law firm King & Spalding, which would allow the chain to stay open while dealing with its debt and help reevaluate long-term contracts and leases,” per GMA.
In 2023, Red Lobster had $11 million in operating losses due to the “Ultimate Endless Shrimp” campaign became a regular on the menu in June.
“The restaurant chain later reported $12.5 million in losses in the fourth quarter of 2023,” GMA reported.
