CAPSIZED: Red Lobster Files Bankruptcy, Closes Locations, With More Than $1 Billion in Debt

Red Lobster, one of the largest restaurant chains in the world, has filed for bankruptcy, citing somewhere between $1 and $10 billion in liabilities.

This is a sign of just how great the economy is doing, as the chain cited the pandemic and inflation as contributing factors to the bankruptcy.

Red Lobster has filed for Chapter 11 protection.

It's one of the largest restaurant bankruptcies in recent years. https://t.co/EloGOy38Nd
— Axios (@axios) May 20, 2024

More from Axios:

By the numbers: Red Lobster said its estimated liabilities were between $1 billion to $10 billion, per its bankruptcy filing.
Catch up quick: Even before the filing in Florida, Red Lobster had to close dozens of locations and lay off hundreds of employees.
The pandemic and inflation tied to rising food and labor costs compounded Red Lobster's challenges.
The big picture: Casual dining as a subsector fared poorly last year, beat out by fast food, fast casual and family dining.

But there's also more:

A hedge fund acquired the company, then proceeded to sell off all the land where Red Lobster restaurants are situated, only to lease it back to Red Lobster at inflated rates. That's the real story behind what's happening here.
— Chew | Chew ™️ 🟧✡️ (@Chewcipher) May 20, 2024

Wow.

Save the Red Lobster biscuits at all costs.
— Unconventional Patriot🇺🇸🦅🐊 (@jso_patriot) May 20, 2024

Those are the only thing we'll truly miss.

SELL US THE CHEDDAR BAY BISCUITS PORTION OF THE BUSINESS
— Autism Capital 🧩 (@AutismCapital) May 20, 2024

Seems to be a common request.

Who would have thought offering endless shrimp and cheddar biscuits to a bunch of leviathans would be a bad business model?
— MJ Tomko (@Tomko_1) May 20, 2024

My father-in-law is a builder. He is insanely gifted. We were looking at a Red Lobster together and I asked him what it would cost to build it today. I will never forget his answer…

“We can’t, we don’t know how to offer endless shrimp without going bankrupt.” https://t.co/jCrkriEERW pic.twitter.com/yquCPRL2Mt
— Robert Sterling (@RobertMSterling) May 21, 2024

Sums it up.

Red Lobster, the largest seafood restaurant chain in the world, has filed for bankruptcy. The company said it had more than $1 billion in debt. pic.twitter.com/PivqoCXSLd
— Breaking911 (@Breaking911) May 20, 2024

$1 to $10 billion in debt.

You just pause the economy...
— Barry Gadbois (@BarryGadbois) May 20, 2024

Yeah, the economy can't just be 'paused'; this is what happens when you try.

Thanks to Bidenomics... Its a shame.
— Gunther Eagleman™ (@GuntherEagleman) May 20, 2024

Really is; several locations are closing, which means layoffs for the employees.

Protip: “All you can eat” in the United States is a one-way street to bankruptcy.
— Douglas Ritz (@douglasritz) May 20, 2024

Sure seems that way.

I was reliably informed by my government and President that the economy is doing just fine and there’s nothing to worry about. In fact, we’re doing even BETTER than we were in 2016.

Make it make sense. https://t.co/L1Jfmq9ymz
— TheScreamPits (@TheScreamPits) May 20, 2024

We're not doing better than 2016. Definitely not.

Perhaps if the food and service didn't suck so bad, they would be financially sound. Haven't been there in years. Do miss the biscuits, though they sell the mix in the store. https://t.co/1Is6UppeIy
— TJ - Aficionado of Fine Bourbon (@1ShieldDefense) May 20, 2024

Also a common reaction: people noted a decline in quality of food and service, which can't help businesses in this economy.