Bankruptcy

Financing

Red Lobster's CEO is questioning the company's relationship with its owner

The casual-dining chain, which filed for bankruptcy this week, is probing whether its former CEO steered all its shrimp purchasing through the company's owner, Thai Union, a shrimp supplier.

Financing

Endless Shrimp becomes pivotal issue in Red Lobster bankruptcy

The chain’s CEO alleged that the deal may have pushed more shrimp business to owner Thai Union Group at Red Lobster’s expense, setting the stage for a messy Chapter 11 proceeding.

The casual-dining seafood chain, with $300 million in debt, filed for Chapter 11 bankruptcy protection in one of the biggest filings in restaurant industry history.

The Bottom Line: The seafood chain’s bankruptcy declaration was not surprising after months of closures and Endless Shrimp recriminations. But that doesn’t make it any less notable.

But is a revival of the retail-restaurant hybrids, which shuttered all locations last month, in the works?

A filing could come as early as next week, according to the Wall Street Journal. The seafood chain closed dozens of restaurants in recent days.

Known for its Cuban sandwiches and devil crabs, the 76-year-old Brocato's Sandwich Shop will continue to operate during the reorganization as it finds financial footing.

The sale, scheduled for Friday, includes all inventory, intellectual property, equipment and more from the urban convenience store-restaurant hybrid, which closed suddenly last month.

Restaurant chains navigated a difficult market in 2023 due to inflation. Here are the brands that closed the most locations as a percentage of their unit count last year.

Boxer Ramen and sister brand SuperDeluxe filed for Chapter 11 bankruptcy protection in February. Both are owned by Portland, Oregon, restaurateur Micah Camden.

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