Reported 5 months ago
Red Lobster filed for bankruptcy after facing financial struggles, including declining guest counts and net sales, with a significant liquidity crisis in 2023. The company's financial woes were exacerbated by factors such as inflated wages, unfavorable leases, and underperforming locations, as well as the costly and supply-obligation-heavy Ultimate Endless Shrimp promotion. The restructuring plan includes creating a leaner company with a smaller menu, focusing on improving operational standards, modernizing IT systems, and reducing costs. Red Lobster aims to enhance the employee and customer experience, simplify its menu, and cut nonproductive spending to navigate through the bankruptcy process successfully.
Source: YAHOO