Red Lobster may file for bankruptcy protection: report

By Steve Goldstein

Seafood restaurant chain Red Lobster may be headed for bankruptcy, according to a published report.

Bloomberg News reported it's getting advice from law firm King & Spalding as the company has been weighed down by the costs of leases as well as labor costs.

Golden Gate Capital is the majority owner of Red Lobster, the American casual dining chain based in Florida. Minority investor Thai Union Group (TH:TU) in February took a writedown of 18.4 billion Thai baht ($500 million) as it lost 800 million baht on its Red Lobster investment last year.

"Other people stop eating beef, I'm going to stop eating lobster," said Thai Union CEO Ludovic Garnier on the fourth-quarter earnings call, according to a transcript from S&P Global Market Intelligence.

Related: Endless Shrimp deal meant endless pain for Red Lobster's owner

-Steve Goldstein

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04-17-24 0516ET