Versatile and resilient, the lobster survives by molting, shedding its skin and growing to form a new, larger shell. But eventually the energy runs out and the transformation becomes more difficult.
Because Red Lobster, one of America’s best-known seafood ambassadors, has reached this point in its life cycle: The once-ubiquitous restaurant chain filed for Chapter 11 bankruptcy on Sunday after more than half a century as the nation’s preeminent seafood franchise. .
In its court filings, the company said it has more than 100,000 creditors and liabilities of between $1 billion and $10 billion. Red Lobster said it plans to reduce its locations as it prepares to sell most of its assets. In the meantime, surviving Red Lobster restaurants will remain open.
It’s been a painful, slow end for Red Lobster, whose agony was telegraphed earlier this year when the company reportedly sought to restructure its debt. After decades as a subsidiary of General Mills, Red Lobster was bought by a private equity firm in 2014 and bolstered by a 2020 investment from a Thai seafood conglomerate. But the company faced challenges in the years following the coronavirus pandemic, when industry headwinds, rising costs and changes in dining habits forced the company to close underperforming establishments.
Thai seafood company Thai Union Group announced in January that it was abandoning its investment in Red Lobster. Last week, dozens of Red Lobster locations began selling off their assets through a liquidator, offering up the spoils of a crumbling restaurant dynasty, such as industrial freezers, lobster tanks and bar equipment (alcohol not included).
In its heyday, Red Lobster had achieved a coveted status among suburban restaurants: affordable enough to be approachable, chic enough to be aspirational. Despite being founded in Orlando, Florida, the chain took heavy inspiration from Bar Harbor, a tourist destination off Maine’s rocky Atlantic coast.
Over its 56 years of life, Red Lobster has gone through many reinventions. Originally billed as an oyster lounge and cocktail bar in the 1960s and 1970s, Red Lobster later became a family dining choice that, for many, was an introduction to seafood.
It may have reached the pinnacle of cultural consciousness with a mention from Beyoncé, who dropped the restaurant’s name in her 2016 song “Formation,” and just as quickly fell from it. Last year, the chain stumbled upon an all-you-can-eat shrimp deal that was so popular with diners that it helped push the company to an $11 million quarterly loss.
“This restructuring is the best path forward for Red Lobster,” Jonathan Tibus, the company’s chief executive, said in a statement Sunday. “This allows us to overcome several financial and operational challenges and emerge stronger and refocused on our growth. »
Red Lobster did not immediately respond to a request for comment.
Gn headline
News Source : www.nytimes.com
