they would have lost $11 million

a legendary one Fish chain in Florida Advertising the closure of 23 branches in the USA. after heavy losses.

The bankruptcy is due to this a controversial “Endless Shrimp” campaign which resulted in losses amounting to millions.

The plan calls for reducing branches in 15 states as part of the financial restructuring.

The process is part of an agreement with Fortress Investment to maintain some operations despite the crisis.

red lobster, the renowned seafood restaurant chain based in Orlando, Florida, is in one of its worst corporate crises. According to a news agency report Reutersthe company filed a bankruptcy plan that calls for the closure of 23 stores in about 15 states of the United States.

This announcement was not an isolated incident: The chain had already closed more than 100 branches at the beginning of the yearin part due to the impact of the pandemic and other operational challenges. After the announced closures Red Lobster wants to stay with around 500 branchescompared to around 650 last year.

The origin of this financial crisis is a decision that initially seemed successful, but turned out to be untenable: the “Endless Shrimps” ad for just $20. Originally conceived as a limited offering, the strategy became permanent under pressure from its shareholderswhich caused operating costs to skyrocket. According to various reports, the chain would have lost around $11 million as a result of this action.

Bankruptcy is not just limited to the closure of businesses: There is one too Corporate restructuring in progress. Fortress Investment Group, which specializes in reactivating restaurant chains, has already provided a $100 million loan to stabilize Red Lobster.

In this context, Damola Adamolekun has been appointed as the new CEO to lead this recovery process.

The impact of the closures goes beyond business: many employees will lose their jobs and customers will miss out on traditional seafood options at certain locations. States that keep the blinds down include: Florida, California, New York, Illinois and Ohioamong other things.

Likewise, the Red Lobster crisis reflects a broader panorama in the casual dining restaurant industry in the United States. Factors such as high inflation, rising rental costs and questionable management decisions have put several chains under pressure.

Despite the difficulties, There is a light of hope: The court approval of the restructuring plan would allow Red Lobster to emerge from bankruptcy under Fortress’s control. With new leadership and the injection of capital, the company aims to revitalize its brand, reduce costs and stabilize its operations.