Red Lobster, once an approachably priced staple among everyday families, is reportedly considering bankruptcy.
Tuesday, Reshmi Basu, writing for Bloomberg, cited sources as stating that Red Lobster was "mulling a Chapter 11 bankruptcy filing" as part of a larger effort to restructure debt. The report notes that the restaurant chain’s struggles are tied, in part, to labor costs and hefty lease agreements. Though no official decision is reported to have been made about next steps, a bankruptcy move would mean that operations could continue while higher-ups tackle the debt issue.
Notably, the news comes after word last month that Jonathan Tibus, described in a Restaurant Dive report as "a restructuring expert" whose previous experience included leading restructuring efforts at Krystal, had been named the new CEO of Red Lobster.
While this week's report of a potential Red Lobster bankruptcy filing does not necessarily mean that fans of the restaurant should expect any imminent closings, longtime appreciators were still quick to kick into biscuit-mourning mode. Naturally, plenty of jokes have also stacked up in connection with Beyoncé's once-ubiquitous "Formation" lyric, "When he fuck me good, I take his ass to Red Lobster."
Join in below. As for the biscuit-mourning aspect of all of this, it's worth noting that official Red Lobster Cheddar Bay Biscuit Mix is indeed sold at stores like Walmart and Kroger.
Complex has reached out to Red Lobster for comment. This story may be updated, quite possibly while consuming a dozen Cheddar Bay Biscuits.
