Red Lobster’s endless shrimp, customer drop detailed in bankruptcy doc

Red Lobster’s endless shrimp, customer drop detailed in bankruptcy doc

Red Lobster’s Chapter 11 bankruptcy filing and the closing of multiple locations of the Florida-based chain are the culmination of massive debt, a carousel of CEOs, an all-you-can-eat shrimp controversy and an overall decline in guests.

Bankruptcy documents filed in the Middle District of Florida detail how Red Lobster has struggled in various ways, including a 30% drop in guests since 2019. In a 124-page document obtained by USA TODAY on Tuesday, Red Lobster CEO Jonathan Tibus explains why the seafood restaurant chain filed for bankruptcy on Sunday and why he supports the decision.

“Recently, the debtors have faced a number of financial and operational challenges, including a difficult macroeconomic environment, a bloated and underperforming restaurant footprint, failed or ill-advised strategic initiatives, and increased competition within the restaurant industry,” Tibus said in the bankruptcy document.

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