Fans Can't Hold It Together After Hearing About Red Lobster Bankruptcy News
Red Lobster Ultimate Feast
Red Lobster is having financial troubles, and fans are completely losing their cool over the mere thought of the restaurant chain shutting down.
It was recently revealed that the beloved seafood spot is contemplating a Chapter 11 bankruptcy filing in hopes of restructuring its massive debt.
According to Bloomberg, the chain is working with a law firm and hoping to get out of long-term contracts and renegotiate leases in the process. Red Lobster's largest investor, Thai Union Group, has yet to sell its majority stakes, but are seeking an exit strategy due to "ongoing financial requirements [that] no longer align" with its "allocation priorities."
Thiraphong Chansiri, Thai Union Group’s CEO, cited the pandemic, labor costs, industry headwinds, rising costs, and high interest rates for Red Lobster's decline in a statement earlier this year.
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And while all those things may have played a part, the eatery's all-you-can-eat promotions have also taken a major toll on its profitability—its $20 Ultimate Endless Shrimp deal cost the company $11 million in its third quarter alone, according to Restaurant Business.
"Red Lobster is done and over with," Chansiri said in February.
Business troubles aside, what will happen to the menu items? This seems to be the biggest question on social media users' minds, as the internet has been thrown into a tizzy over the idea that Red Lobster could possibly be no more.
"This economy is so sad. Everything is closing. I am making peace with the 99cent store but Red Lobster?" one reacted, while another said, "If Red Lobster really shuts down, I hope yall know that all these other restaurant chains aren’t far behind which is sad cuz these are the main places a family of 3 or more can actually enjoy themselves at a restaurant without breaking the bank…"
If Red Lobster really shuts down, I hope yall know that all these other restaurant chains aren’t far behind which is sad cuz these are the main places a family of 3 or more can actually enjoy themselves at a restaurant without breaking the bank… pic.twitter.com/2xRFfnNDC1
— ? (@WorldwideBOSS_4) April 17, 2024
"Prayers up for all the cheddar bay biscuit lovers," financial newsletter Morning Brew joked in a tweet, after running down a few of the company's money-costing missteps.
More responses continued to roll in, like tweets that read, "Red Lobster filing for bankruptcy is crazy them cheddar bay biscuits changed the game fr" and "If red lobster closes down where am I going to go to get 1lb of crab legs on Tuesday for $20??????"
"I've got the Red Lobster Cheddar Bay Biscuit recipe," yet another claimed, and F.Y.I.—so do we. You're welcome.
Next: We Cracked the Copycat Code for Red Lobster's Magical Cheddar Bay Biscuits
