United States: The main reason that led to the bankruptcy of the traditional rppusa restaurant chain

A famous restaurant chain in the United States declared bankruptcy and closed its locations across the country.

Seafood chain Red crab She confirmed that she had accepted Chapter 11 Bankruptcy CodeWhich led to the temporary closure of nearly 90 of its locations in the country United State And the permanent closure of about 50 of them.

Why did Red Lobster file for bankruptcy?

Neil Sherman, CEO of TAGeX Brands, announced on LinkedIn a liquidation sale of fixtures, furniture and equipment from several Red Lobster locations. The company is seeking to use the bankruptcy process to “Driving operational improvements-Simplify business by reducing locations and Pursuing the sale of almost all of its assets“.

The Red Lobster chain, which dates back 56 years, has faced financial difficulties for years. In an attempt to increase the number of visits to their restaurants, The company has expanded its “all-you-can-eat shrimp” offering. last year. However, this strategy was not successful, as high demand overwhelmed the chain’s ability to maintain profits, leading to significant losses.

Who owns Red Lobster in the USA?

Since 2020, Thai Union GroupBased in Thailand, it is the largest shareholder in Red Lobster Company. He owns 49% of the company. Previously, in 2014, Darden Restaurants sold Red Lobster to private equity firm Golden Capital for approximately $2.1 million.

Rumors of a possible bankruptcy emerged in the spring when Jonathan Tebus has been appointed as the new CEO. Tibus, managing partner of Alvarez & Marsal, is known for his experience in restructuring corporate entities. As of last month, Red Lobster was reportedly looking for a buyer in hopes of avoiding bankruptcy.