Red Lobster trolled as seafood chain considers filing for bankruptcy amid financial strain

ORLANDO, FLORIDA: Social media went into a frenzy when reports hinted that the once-thriving seafood favorite, Red Lobster, might be facing bankruptcy concerns due to ongoing financial struggles.

Internet users unleashed a wave of mockery and ridicule, bombarding the seafood empire with taunts and jests.

Red Lobster set to file for bankruptcy

As reported by Fox Business, Red Lobster is contemplating filing bankruptcy to ease its financial struggles.

Bloomberg recently released a report in which it mentioned that the seafood chain is considering a Chapter 11 bankruptcy filing to rework some pricey leases and deal with other long-term contracts, along with the rising costs of labor.

The report additionally mentioned that Red Lobster is receiving support from the law firm King & Spalding regarding this issue. While discussions about restructuring are underway, no final decisions regarding bankruptcy have been made at this time.

Fox Business states that if Red Lobster does file for Chapter 11, they could keep operating while they mint a plan with creditors and investors to lower their debt and improve their financial situation for the future.

Since its inception in 1968 by Bill Darden and Charley Woodsby, the seafood establishment has undergone significant changes in its management and operations.

Following General Mills' acquisition in 1970, Red Lobster experienced rapid expansion throughout the United States and Canada. Eventually, it evolved into its own publicly traded entity named Darden Restaurants a couple of decades later.

In 2014, Darden Restaurants sold Red Lobster to Golden Gate Capital. Thai Union, which used to own a quarter of the company, took over Golden Gate's share in 2021, as reported by Fox Business.

On top of all this, Fox Business mentioned that Jonathan Tibus became the new CEO of Red Lobster in March. Tibus is known for his skills in turning around struggling restaurants, as well as retail and hospitality businesses. He's led quite a few restructuring efforts in his career.

Internet users joke about Red Lobster going bankrupt

Facebook users mocked Red Lobster, with one writing, "I thought the cheddar biscuits would save them!"

Another user wrote, "This is what happens when the internet 'chefs' tell people how to make their own cheddar bay biscuits."

A user commented, "Charging extra for a salad will lead to this."

Another user commented, "Endless shrimp took them down 😉"

A user stated, "So can we still buy the biscuit mix if they go under? Asking for a friend."

This article contains remarks made on the Internet by individual people and organizations. MEAWW cannot confirm them independently and does not support claims or opinions being made online.