A popular restaurant chain in the US has declared bankruptcy and is closing locations across the country.

Seafood chain Red Lobster Confirmed acceptance Chapter 11 Bankruptcy ActAlmost 90 of its locations were temporarily closed as a result America And nearly 50 of them are permanent closures.

Why did Red Lobster file for bankruptcy?

TAGeX Brands CEO Neil Sherman announced on LinkedIn the liquidation sale of fixtures, furniture and appliances from several Red Lobster locations. The company seeks to use the bankruptcy process”Operational improvementsEase of doing business by reducing locations and Proceed with the sale of all its assets”.

Red Lobster, which has a 56-year history, has faced financial problems over the years. In an effort to increase traffic to their restaurants, The company expanded its “all-you-can-eat shrimp” offering Last year. However, this strategy was not successful as high demand exceeded the chain's ability to maintain profitability, resulting in significant losses.

Who owns the red lobster in America?

From 2020 onwards, Thai Union CommitteeBased in Thailand, Red Lobster has been the largest shareholder, holds 49% stake in the company. Earlier, in 2014, Tartan Restaurants sold Red Lobster to private equity firm Golden Capital for about $2.1 million.

Rumors of possible bankruptcy surfaced in the spring Jonathan Dibus was appointed as the new CEO. Dibus, a managing partner at Alvarez & Marcel, is known for his experience in restructuring corporate entities. As of last month, Red Lobster was said to be looking for a buyer in hopes of avoiding bankruptcy.