Red Lobster, an American Seafood Institution, Files for Bankruptcy

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Versatile and resilient, the lobster survives by molting, shedding its skin and growing into a new, bigger shell. But eventually, energy runs low and the transformation becomes more difficult. Red Lobster, one of America’s best-known shellfish ambassadors, has reached this stage in its life cycle: The once-ubiquitous restaurant chain filed for Chapter 11 bankruptcy protection on Sunday after more than half a century as the country’s pre-eminent seafood franchise. In court filings, the company said it had more than 100,000 creditors and liabilities of $1 billion to $10 billion. Red Lobster said it planned to reduce its locations as it prepared to to sell most of its assets. In the meantime, surviving Red Lobster restaurants will remain open. It has been a painful, slow end for Red Lobster, whose death throes were telegraphed earlier this year when the company reportedly sought to restructure its debt. After decades as a General Mills subsidiary, Red Lobster was purchased by a private equity firm in 2014, and bolstered by a 2020 investment from a Thai seafood conglomerate. But it faced challenges in the years since the beginning of the coronavirus pandemic, when industry headwinds, rising costs and changes in dining habits forced the company to close underperforming locations.