MAY 20, 2024 — BANKRUPTCY
In a surprise Sunday filing, the company filed for Chapter 11 protection and plans to hand control of the company to its lenders, led by Fortress Investment Group. The lenders have agreed to provide $100 million in financing to support the chain through bankruptcy. The company blames its demise on onerous leases, high labor costs, and a disastrous unlimited shrimp promotion.
MAY 15, 2024 — Original post…
Orlando, Florida-based Red Lobster Hospitality, a casual seafood-oriented dining restaurant, appears to be in serious trouble and may be contemplating filing Chapter 11 bankruptcy.
According to media reports, the company has abruptly closed more than 50 restaurants throughout the United States and in some cases, engaged TAGeX Brands to auction restaurant equipment from more than 50 Red Lobster locations. The auction is somewhat unusual as "These auctions are 'winner takes all' -- meaning each winner will receive the ENTIRE contents of the Red Lobster location they bid on."
The number of employees impacted is in the hundreds, but the company is not responding to media requests for more information.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?