Red Lobster Declares Bankruptcy

With more than 600 locations, Red Lobster has filed for bankruptcy. Burdened by debt and declining traffic, the seafood chain is set to transfer ownership to creditors. Despite still generating $2 billion in sales annually, the company has struggled to stay afloat.

The bankruptcy news drew nostalgic customers back to the nautical-themed restaurants. Some even sought to buy memorabilia from the closing locations.

Jess McKay, a 33-year-old fitness instructor, rushed to a Red Lobster upon hearing the news. She fondly recalled childhood memories of dining there with her family.

Red Lobster was founded in 1968 by Bill Darden in Lakeland, Florida, and rapidly expanded with the help of an investment by General Mills. However, recent years have been tough, and the chain has struggled to attract diners.

Despite the current challenges, Red Lobster still serves a significant portion of the lobster market. However, with nearly $300 million in debt and less than $30 million in cash by late 2023, the future remains uncertain.

About James Cannon

James Cannon is an experienced hedge fund analyst. He has served on the advisory boards for various different Fortune 500 companies as well as serving as an adjunct professor of finance. James Cannon has written for a variety of Financial Magazines both on and off line. Contact James at james[at]