Food · Posted 19 minutes ago Red Lobster Has Officially Filed For Bankruptcy, And The Internet Is In Complete Shambles Over The News "We have to retrieve the Cheddar Bay Biscuit recipe." by Claudia Santos BuzzFeed Staff Link Facebook Pinterest Twitter Mail On Sunday, Red Lobster announced it would officially file for Chapter 11 bankruptcy. The news comes after the closure of over 100 of its locations, many of which were completely gutted and their contents auctioned off, including lobster tanks, industrial ovens, patio heaters, and, in some cases, the whole restaurant.
Some former Red Lobster employees even claimed they received no notice of these closures and walked into locked or empty restaurants. Chuck Bennett / Getty Images While it may come as a shock to many die-hard Cheddar Bay Biscuit fans, the seafood chain has been struggling for some time now. Sales have been down for a few years (with a big decline in the last 12 months ).
In 2013, private equity firm Golden Gate Capital struck a deal to purchase Red Lobster from Darden Restaurants (who own Olive Garden and LongHorn Steakhouse). The firm sold the chain's real estate assets in a sale-leaseback agreement, meaning Red Lobster would have to start paying rent on properties they could no longer afford. Paulmckinnon / Getty Images Then came the all-you-can-eat shrimp.
In 2023, Red Lobster brought back the old promotion, which allowed customers to order an unlimited number of select shrimp dishes for just $20. In an int.