The Gateway Pundit revealed last week that Red Lobster was in danger of bankruptcy after closing 127 locations in 27 states. Now, the famous seafood joint’s fall is complete, thanks mainly to Bidenomics.
As the Daily Mail reported, Red Lobster officially filed for Chapter 11 bankruptcy protection Sunday night. The chain revealed in a court filing late Sunday Red Lobster’s estimated assets are between $1 billion and $10 billion, while its estimated liabilities are between $1 billion and $10 billion.
Red Lobster also has more than 100,000 creditors.
The Mail notes the bankruptcy petition was signed by Jonathan Tibus, a corporate restructuring specialist who became Red Lobster’s CEO in March.
Tibus released a statement claiming that filing for bankruptcy is “the best path forward” and the company will emerge more robust as a result.
This restructuring is the best path forward for Red Lobster. It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth.
The support we’ve received from our lenders and vendors will help ensure that we can complete the sale process quickly and efficiently while remaining focused on our employees and guests.
NPR reports that roughly 580 locations in the U.S. and Canada will stay open through the process. These locations combine to employ approximately 36,000 workers.
Biden’s garbage economy has made dining out in America more expensive. Fast food prices, for example, have skyrocketed a whopping 33% since 2019 as Bidenflation continues to make the dollar more worthless.
Red Lobster launched an ill-advised $25 “endless shrimp’” promotion in a desperate attempt to attract customers. The offer was introduced last June as a permanent fixture on the menu.
More people took advantage of the offer than Red Lobster expected, but the company kept it going for six months.
The losses exceeded the $3.3 million lost under a similar promotion scheme in 2003.
Red Lobster was founded by Bill Darden in 1968. Darden wanted to make seafood restaurants more accessible and affordable for American families. He later sold the company to General Mills in 1970.
General Mills later formed Darden Restaurants, which has multiple other restaurant chains, including Olive Garden. They spun Red Lobster off in 1995.
Red Lobster currently operates 700 locations worldwide.
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