Red Lobster bankruptcy (2024)
Red Lobster filed for Chapter 11 bankruptcy after years of losses, including a costly all-you-can-eat shrimp promotion. The chain closed about 100 locations within weeks of filing.
Red Lobster's assets were sold, and the chain reemerged under new ownership with far fewer restaurants.
The case became one of the largest casual dining bankruptcies in recent years and a warning about relying on discount promotions.
Hooters is following the same pattern: bankruptcy, mass closures, then survival with a smaller footprint.
