Red Lobster Bankruptcy Possible Says Recent Industry Report

But, but, what about those BISCUITS?!?!

In what could be yet another blow to the restaurant industry, a once-thriving chain is reportedly considering bankruptcy.

Restaurant Chain Struggles In 2024

This year hasn’t been easy for some restaurant chains, and we’re only into April. Among those closing locations in the first quarter of the year have been Boston Market, Hardee’s and Outback Steakhouse.

These chains were among those that survived the COVID-19 pandemic. but have faced ongoing struggles since that time. Rising labor costs, the cost of leases and more have continued to create deeper holes for these brands to climb out of.

Boston Market, for example, was just denied filing for bankruptcy a second time as its total number of locations has reportedly been whittled down to less than 30.

Now, yet another well-known name in the restaurant industry could be headed into bankruptcy.

Seafood Restaurant Struggles To Stay Afloat

A recent report from Bloomberg indicated the parent company that owns Red Lobster is allegedly considering filing for Chapter 11 bankruptcy.

Early indications are the bankruptcy would allow the Red Lobster to restructure debt that includes renegotiating pricey leases at various locations. So far, Bloomberg is not reporting any closures related to the potential filing.

READ MORE: This Popular McDonald’s Burger Has Jumped In Price 168% In The Last 10 Years

Red Lobster’s website tells of the brand’s beginnings as a single, family-owned restaurant in Lakeland, Florida in 1968. Today, there are more than 700 locations worldwide.

As much as Red Lobster become known for its seafood, it also amassed a cult following for its cheddar bay biscuits. The menu item eventually became popular enough for Red Lobster to make its biscuit mix widely available at stores such as Walmart and Target.