Red Lobster abruptly shuts 48 restaurants as it considers bankruptcy

Sharing is Caring!

Struggling restaurant chain Red Lobster is reportedly abruptly closing at least 48 of its outlets across the US amid warnings they may file for bankruptcy.

The chain has ‘temporarily closed’ locations in Buffalo, Orlando, Jacksonville and other cities, and is auctioning off kitchen equipment and furniture, according to CNN.

See also  Electric Car Shuts Down, Traps the Driver Inside, then Catches Fire.

The brand is reportedly eyeing up a possible Chapter 11 filing to restructure its debt, allowing it to discard long-term contracts and renegotiate new leases.

Red Lobster’s cash flows have been hit by expensive leases and high labor costs.

See also  ABC News: "Some California restaurants face stark realities - ‘We quickly shifted from being profitable to losing money’"

Views: 80

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.