Red Lobster considers filing for bankruptcy

This might make you feel crabby.

Red Lobster may be filing for Chapter 11 bankruptcy soon, according to sources who spoke with Bloomberg on Tuesday.

The seafood chain is reportedly dealing with a large amount of debt from expensive leases and rising labor costs.

By filing for bankruptcy, Red Lobster would be able to continue operating while it works on a way to cut its debt, although a final decision has not yet been made.

Red Lobster connoissueurs shared tongue-in-cheek observations.

“Me racing to Red Lobster right now to spend all my gift cards before they’re no longer honored by the bankruptcy court,” one user wrote on X, posting a video of the boxer Mike Tyson sprinting.

“Red Lobster is considering a Chapter 11 bankruptcy filing. I guess you could say the company is in hot water,” another person quipped.

One X user took time to earnestly remember the chain’s cheddar biscuits, which are offered in unlimited quantities for people who dine-in at the restaurant:

“My father-in-law is the head chef at a famous restaurant. He is insanely gifted. We were at a Red Lobster years ago and I asked him what it would cost to recreate the Cheddar Bay biscuits from scratch. I will never forget his answe r… ‘We can’t, we don’t know how to do it.’”

Red Lobster says it was founded in 1968 in Lakeland, Fla., and opened hundreds of locations throughout the U.S. and Canada, in addition to franchises in Mexico, Japan, Ecuador and Thailand.

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