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As major restaurant chain Red Lobster files for bankruptcy protection after abruptly shuttering 99 sites, the household name is not the only food or retail icon forced to announce closures this year. Shockwaves rippled through the catering industry and beyond when Red Lobster , before filing for Chapter 11 . Analysts suggested the blame lay with and costly all-you-can-eat deals offered as the price of shrimp fluctuated then soared.

Restaurant bosses were also forced to contend pushing up wholesale costs, with rising prices also forcing many diners to eat at home to save money. But Red Lobster is not alone; several . A for businesses and a for consumers has left many stalwarts floundering.



Thousands of small businesses have warned , but even well-known brands that many Americans have grown up with are also at risk. Many have filed for Chapter 11 bankruptcy, which is often referred to as a "reorganization" bankruptcy and is effectively a type of protection. It means that creditors usually suspend attempts to collect debts but will have a say on any reorganization plans, while the debtor remains in possession of the business and may even continue to run it with the possibility—depending on court approval—to borrow more money.

It is usually offered when businesses have large debts but also earn a sizable income. As scores of much-loved businesses file for bankruptcy, has reached out to the U.S.

Chamber of Commerce by email seeking comment on the sheer volume of closures. Belo.

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