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Red Lobster restaurant: Red Lobster closes multiple locations as company pre...

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Published Time: 15.05.2024 - 19:21:30 Modified Time: 15.05.2024 - 19:21:30

In this undated file photo, a Red Lobster Restaurant is shown.Jeff Greenberg/UIG via Getty Images, FILEThe decision comes just months after a major investor blamed Red Lobster's fumbled "Ultimate Endless Shrimp" promotion for costing the restaurant chain millions in losses. Red Lobster restaurant


The popular seafood restaurant chain began eyeing Chapter 11 to consolidate debts last month. The Wall Street Journal reported Tuesday that the company is now expected to file for bankruptcy "as early as next week," according to familiar with the matter.


The decision comes just months after a major investor blamed Red Lobster's fumbled "Ultimate Endless Shrimp" promotion for costing the restaurant chain millions in losses.

During an earnings call last year, Red Lobster's former Thailand-based investor, Thai Union Group, shared that the menu promotion contributed to its more than $11 million third quarter operating loss.

Ludovic Garnier, Chief Financial Officer for Thai Union Group, told ABC News this week, "Something which was different from our expectation is the proportion of the selecting this promotion was much higher compared to expectation."


Financial reporter and affordable lifestyle expert Jennifer Streaks explained that because "consumers now are looking for value when they're going outside of the home" she thinks "consumers really ate more than Red Lobster could afford."

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