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Red Lobster files for bankruptcy after missteps including all-you-can-eat shrimp
This Red Lobster in Maryland was among dozens of locations that closed abruptly ahead of the restaurant’s bankruptcy filing.
Alina Selyukh/NPR
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Alina Selyukh/NPR
This Red Lobster in Maryland was among dozens of locations that closed abruptly ahead of the restaurant’s bankruptcy filing.
Alina Selyukh/NPR
Red Lobster, America’s largest seafood chain known for its shrimp and Cheddar Bay biscuits, has filed for bankruptcy.
Its seafood restaurants are in hot water after a series of bad choices by a parade of executives, including an ill-fated promotion for all-you-can-eat-shrimp starting at $20.
Almost 580 locations in the U.S. and Canada are expected to stay open through the process, employing about 36,000 workers. Last week, dozens of other Red Lobster locations closed abruptly. Their entire contents — including freezers, ovens, booths and lobster tanks — have already been auctioned off.
The fire sale was a precursor to a long-expected bankruptcy filing, in which Red Lobster plans to sell “substantially all of its assets.” Since March, the chain has been run by CEO Jonathan Tibus, known as a corporate-restructuring expert.
Red Lobster’s troubles include “a difficult macroeconomic environment, a bloated and underperforming restaurant footprint, failed or ill-advised strategic initiatives, and increased competition within the restaurant industry,” Tibus wrote in court documents.
Brand crisis meets ownership crises
Red Lobster, now the largest seafood chain, did not get cooked just recently. It has struggled for a decade as diners have pulled away from large casual-dining chains.
In that world, Red Lobster was one of the originals. It started in 1968 and exploded through the 1980s and 1990s, hosting generations of Americans for celebrations and dates — with many cracking their very first lobsters at its tables.
In recent years, marked by rising inflation, Red Lobster has been losing out on both ends: to fresher, nicer, more local restaurants; and to the rising tide of cheaper, quicker spots, like Shake Shack or Surfside Taco.
And during this cultural shift, Red Lobster’s finances have floundered.
A private equity firm bought the chain ten years ago from Darden Restaurants, which owns rivals Olive Garden and LongHorn Steakhouse. The firm, Golden Gate Capital, funded the deal partly by selling Red Lobster’s real estate.
That meant the chain had to start paying rent. That’s now a major financial factor in Red Lobster’s bankruptcy filing, which asks the court to reject 108 leases, letting the company abandon those locations.
Since 2020, Red Lobster has been run by its largest shareholder: Thai Union Group, a seafood supplier also behind the Chicken of the Sea brand. And the bankruptcy filing lays much blame on Thai Union and ex-CEO Paul Kenny.
After massive financial losses during the pandemic, followed by increases in the costs of food and wages, Thai Union pursued extensive cost-cutting at Red Lobster. The chain was run by a conveyor belt of executives; it had no CEO for a year.
The bankruptcy filing alleges that Thai Union interfered with daily operations and even pushed out two rival suppliers of breaded shrimp, securing a costlier exclusive deal for itself.
All-you-can-eat shrimp fiasco
Then came a reboot idea that turned into a jumbo disaster: Ultimate Endless Shrimp. Red Lobster took its classic promotion and made it permanent, with prices originally starting at $20.
Thai Union later cited this as the main cause of its $11 million loss that quarter. The goal was to get more people in the door, which did happen. But many diners then stayed for hours, picking at plate after plate of shrimp dishes and — critically — buying little else.
Thai Union CEO Thiraphong Chansiri later said the ordeal left him scarred.
“Other people stop eating beef, I’m going to stop eating lobster,” he told investors.
In January, Thai Union washed its hands of Red Lobster. The owners said they would essentially abandon their stake in the chain, setting the restaurant company on a path to bankruptcy.
In this week’s Chapter 11 filing, Red Lobster says it has a prearranged bid, known as a “stalking horse” bid, from its lenders to buy out the chain, unless it receives a higher rival bid.
NPR’s Barclay Walsh contributed to this report.
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Weather tracker: Further flood watches issued across California
After prolonged heavy rainfall and devastating flooding across the Pacific north-west in the past few weeks, further flood watches have been issued across California through this week.
With 50-75mm (2-3in) of rainfall already reported across northern California this weekend, a series of atmospheric rivers will continue to bring periods of heavy rain and mountain snow across the northern and central parts of the state, with flood watches extending until Friday.
Cumulative rainfall totals are expected to widely exceed 50mm (2in) across a vast swathe of California by Boxing Day, but with totals around 200-300mm (8-12in) possible for the north-western corner of California and western-facing slopes of the northern Sierra Nevada mountains.
Los Angeles could receive 100-150mm (4-6in) of rainfall between Christmas Eve and Christmas Day, which could make it one of the wettest Christmases on record for the city. River and urban flooding are likely – particularly where there is run-off from high ground – with additional risks of mudslides and rockslides in mountain and foothill areas.
Winter storm warnings are also in effect for Yosemite national park, with the potential for 1.8-2.4 metres (6-8ft) of accumulating snow by Boxing Day. Heavy snow alongside strong winds will make travel very difficult over the festive period.
Heavy rain, lightning and strong winds are forecast across large parts of Zimbabwe leading up to Christmas. A level 2 weather warning has been issued by the Meteorological Services Department from Sunday 21 December to Wednesday 24 December. Some areas are expected to see more than 50mm of rainfall within a 24-hour period. The rain will be accompanied by hail, frequent lightning, and strong winds. These conditions have been attributed to the interaction between warm, moist air with low-pressure systems over the western and northern parts of the country.
Australia will see some large variations in temperatures over the festive period. Sydney, which is experiencing temperatures above 40C, is expected to tumble down to about 22C by Christmas Day, about 5C below average for this time of year. Perth is going to see temperatures gradually creep up, reaching a peak of 40C around Christmas Day. This is about 10C above average for this time of year.
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Lawmakers threaten Attorney General Bondi with contempt over incomplete Epstein files
Attorney General Pam Bondi, accompanied by Deputy Attorney General Todd Blanche (L) and FBI Director Kash Patel (R), speaks during a news conference at the Justice Department on Nov. 19. Some lawmakers said the department’s release of files relating to Jeffrey Epstein had too many redactions as well as missing information.
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Two lawmakers are threatening a seldom-used congressional sanction against the Department of Justice over what they say is a failure to release all of its files on convicted sex offender Jeffrey Epstein by a deadline set in law.
Reps. Ro Khanna and Thomas Massie spearheaded the effort to force the Epstein files’ release by co-sponsoring the Epstein Files Transparency Act, but both have said the release had too many redactions as well as missing information.

“I think the most expeditious way to get justice for these victims is to bring inherent contempt against Pam Bondi,” Massie, a Republican from Kentucky, told CBS’s Face the Nation on Sunday. “Basically Ro Khanna and I are talking about and drafting that right now.”
Inherent contempt refers to Congress’ authority to fine or arrest and then bring to trial officers who are obstructing legislative functions. It was last successfully used in the 1930s, according to the American Bar Association.
Khanna, a California Democrat, noted that the House would not need the Senate’s approval to take such action, which he said would result in a fine for Attorney General Pam Bondi.
“I believe we’re going to get bipartisan support in holding her accountable,” he told Face the Nation.
Justice Department defends partial release
The Justice Department on Sunday defended its initial, partial release of documents, some of which were heavily redacted.
“The material that we released on Friday, or the material that we’re going to release over the next a couple of weeks, is exactly what the statute requires us to release,” said Deputy Attorney General Todd Blanche on NBC’s Meet the Press, referring to the Epstein Files Transparency Act.

Blanche said the administration has hundreds of lawyers going through the remaining documents to ensure that victims’ information is protected. Still, lawmakers from both parties remain unsatisfied.
“Any evidence or any kind of indication that there’s not a full reveal on this, this will just plague them for months and months more,” said Republican Sen. Rand Paul of Kentucky on ABC’s This Week. “My suggestion would be — give up all the information, release it.”
Blanche told NBC he was not taking the threats of contempt seriously.
“Not even a little bit. Bring it on,” he said, adding that lawmakers who have spoken negatively about Bondi and FBI Director Kash Patel “have no idea what they’re talking about.”
Back and forth over Trump photo
The trove of documents released Friday contained little new information about Epstein, prompting accusations that the department wasn’t complying with the law. There was a photograph included in Friday’s release that showed a desk full of photos, including at least one of President Trump. It was among more than a dozen photographs no longer available in the Justice Department’s “Epstein Library” by Saturday, NPR found.

On Sunday, the Justice Department re-uploaded the photo of the desk, and provided an explanation on X.
“The Southern District of New York flagged an image of President Trump for potential further action to protect victims,” the post read. “Out of an abundance of caution, the Department of Justice temporarily removed the image for further review. After the review, it was determined there is no evidence that any Epstein victims are depicted in the photograph, and it has been reposted without any alteration or redaction.”
The Justice Department did not offer an explanation for the other photos whose access had been removed.
Blanche told NBC the Justice Department was not redacting information around Trump or any other individual involved with Epstein. He said the Justice Department had removed photos from the public files “because a judge in New York has ordered us to listen to any victim or victim rights group, if they have any concerns about the material that we’re putting up.

“And so when we hear concerns, whether it’s photographs of women that we do not believe are victims, or we didn’t have information to show that they were victims, but we learned that there are concerns, of course, we’re taking that photograph down and we’re going to address it,” he said.
Earlier Sunday, the Justice Department also posted to X a new version of the 119-page transcript of grand jury proceedings in the case of Epstein associate Ghislaine Maxwell. The original version had been entirely redacted.
“Here is the document now with minimal redactions. Documents and photos will continue to be reviewed consistent with the law and with an abundance of caution for victims and their families,” the Justice Department wrote in its post.
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