South Carolina: Red Lobster restaurants the may close

Red Lobster currently has more than $1 billion in debt and less than $30 million in cash on hand. The company plans to sell its business to its lenders and receive financing to stay afloat3.

Red Lobster considered closing several dozen more restaurants following its bankruptcy due to several factors. The company had more than $1 billion in debt and less than $30 million in cash on hand. Additionally, Red Lobster faced increasing competition from fast-casual chains, rising lease and labor costs, and financial challenges from its "Ultimate Endless Shrimp" promotion, which resulted in a $20 million loss for the company in 2023. Red Lobster planned to sell its business to its lenders and use the bankruptcy proceedings to simplify its operations, close restaurants, and pursue a sale.