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Red Lobster Files For Bankruptcy Protection

Source: Brandon Bell / Getty

Red Lobster has officially filed Chapter 11 bankruptcy after closing nearly 100 locations.

Filing this type of bankruptcy allows the restaurant chain to stay in business while restructuring its finances and operations. According to reports, Red Lobster voluntarily made the bankruptcy filing on May 19 in Florida.

The dining giant has reportedly been struggling financially due to it’s unlimited shrimp special that offers customers all-you-can-eat shrimp for just $20.

According to Red Lobster’s CEO, Jonathan Tibus, this new business move will allow the chain to address several financial and operational challenges in a way that promotes company strength and growth.

“The support we’ve received from our lenders and vendors will help ensure that we can complete the sale process quickly and efficiently while remaining focused on our employees and guests,” said Tibus.