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| Economy |
| Chapt 11 for Red Lobster |
| 2024-05-22 |
| [MarketBeat] "Bankruptcy is a word that is often misunderstood. Filing for bankruptcy does not mean we are going out of business," Red Lobster wrote. "In fact, it means just the opposite. It is a legal process that allows us to make changes to our business and our cost structure so that Red Lobster can continue as a stronger company going forward." ---------- Chapter 11 is for reorganization. Chapter 7 is for liquidation. Part of Red Lobster's problem is the 'all the shrimp you can eat for $20' special since a lot of people can eat a lot of shrimp. |
| Posted by:Lord Garth |
| #4 Not a bad franchise restaurant- not great but decent enough. |
| Posted by: Glenmore 2024-05-22 20:08 |
| #3 What I liked was the way Thai Union, the current owner, said that they would no longer supply RL. They expect to be paid. |
| Posted by: ed in texas 2024-05-22 11:57 |
| #2 The statement is true. It will take more than one chapter 11 to knockout RL. I suspect it will be 10 years. |
| Posted by: Super Hose 2024-05-22 08:18 |
| #1 ...Two interesting details here: First, during a reorganization, RL's parent company bought the land under each RL...then leased it back to the restaraunt. That way, no matter how bad the economy was, there was a steady income stream from every single site. Tough luck for the franchisee, though. And the $20 shrimp helped do 'em in, but not the way you'd think: one of RL's owners is a Thai fishing company...which was making them buy their shrimp at a fairly substantial markup. This meant that even though the $20 shrimp was RL's best selling meal, they were losing money on every plate because they couldn't source cheaper shrimp. Good thing I'm not smart enough to understand business. ;) Mike |
| Posted by: MikeKozlowski 2024-05-22 06:31 |