Report: Red Lobster is flirting with the idea of Chapter 11 bankruptcy after endless shrimp deal caused people to clean them out

Red Lobster appears to have learned the hard way that people really really like shrimp. According to reports, just a year after the endless deal left the restaurant up a creek without a paddle — here we are now here.

The Lowdown

People familiar with the matter according to claim that coupled with years of losses and the infamous 2023 deal — the chain lost an obscene amount of money. The deal itself is believed to have cost the chain millions of dollars because they under assumed how enthused people would be.

Bloomberg reports that the chain’s biggest investor Thai Union Group intends to sell its stake due to its financial uncertainty.