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Red Lobster Files for Chapter 11 Bankruptcy, Dozens of Locations Close

By  //  May 20, 2024

The financial woes hitting seafood restaurant chain Red Lobster have prompted it to close dozens of locations and file for Chapter 11 bankruptcy protection, with some of the blame being heaped on the chain’s endless shrimp bargain. (Red Lobster Image)

(FOX BUSINESS) – The financial woes hitting seafood restaurant chain Red Lobster have prompted it to close dozens of locations and file for Chapter 11 bankruptcy protection, with some of the blame being heaped on the chain’s endless shrimp bargain.

In the wake of the pandemic, Red Lobster looked to boost traffic to its restaurants by offering a $20 all-you-can-eat shrimp deal that the company hoped would serve as a loss leader and bring in more customers who would become regulars.

However, the deal itself proved too good for customers to pass up.

The Los Angeles Times reported that some patrons took to social media to brag about how many shrimp they were able to scarf down, including one woman who said she ate 108 shrimp during a four-hour meal.

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