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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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Video appears to show U.S. cruise missile striking Iranian school compound
Screenshots of a cruise missile hitting a compound where an Iranian girl’s school was struck killing around 175.
Screenshots by Geoff Brumfiel for NPR/ Mehr News on X
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Screenshots by Geoff Brumfiel for NPR/ Mehr News on X
A new video released by Iranian state media shows what appears to be a U.S. cruise missile striking a compound where around 175 Iranian students and staff were killed at a girl’s school a little over a week ago.

The seven-second video was posted by Mehr News, an Iranian state news agency. It shows the missile slamming into a building inside a walled compound – likely a health clinic that was also inside the perimeter of what was at one point an Iranian Revolutionary Guard naval base.
The strike appears to have taken place shortly after the girl’s school was hit. In the new video, smoke is already visibly rising from the part of the compound where the school was located. State media reports put the death toll from the bombing at somewhere between 165 and 180, many of them students.
Although the quality of the video makes precisely identifying the munition difficult, the missile appears consistent with a Tomahawk cruise missile, according to Jeffrey Lewis, a professor of global security at Middlebury College. The U.S. is the only country known to have Tomahawk missiles, and U.S. officials say the military was operating in the south of the country at the time of the strike.
“The first shooters at sea were Tomahawks unleashed by the United States Navy,” Gen. Dan Caine, the chairman of the Joint Chiefs of Staff said in a press conference on the Monday after the strike.
Speaking aboard Air Force One on Saturday, President Trump accused Iran of being responsible for the school bombing.
“Based on what I’ve seen, I think it was done by Iran,” Trump said. “Because they’re very, inaccurate as you know, with their munitions. They have no accuracy whatsoever. It was done by Iran.”
Lewis, however, said that the missile in the video did not appear to be consistent with known, Iranian-made cruise missile designs.
NPR was able to verify the location of where the video was shot to a housing development under construction across the street from the compound. Numerous details, including the sign at the clinic entrance, matched known details about the compound where the school was located. The video was first geolocated by the online research group Bellingcat.
The short video appeared to be authentic. While AI-generated videos have been posted online during the latest conflict with Iran, they typically do not contain details of a specific location, unless it is already well known, like a major landmark. Many also contain errors in physics or other inaccuracies when showing a missile or rocket attack.
The Pentagon did not immediately respond to NPR’s request for a comment about the video.
NPR was the first to report on satellite imagery from the company Planet that suggested multiple buildings, including the clinic, were hit in what appeared to be a precision strike that resulted in the deaths at the school. In total, seven buildings were hit in the strike on the complex, which at one point had been an Iranian Revolutionary Guard (IRGC) naval base.
The base, located in the southeastern city of Minab, appeared to be a relatively minor facility. NPR was able to find one video shot at the base during a 2010 military exercise that showed members of the Iranian Revolutionary Guard flying an Ababil-3 drone from an airfield directly across from the compound.
But historic satellite imagery showed little activity at the airfield in the years following that demonstration. NBC News has reported that local officials say the base was abandoned for over a decade, but NPR has not been able to independently verify those claims.

The school was separated from the compound by a wall between 2013 and 2016, according to satellite imagery. Satellite imagery also shows the airstrip was removed in 2024. Online posts from a local construction firm and verified by NPR show the land where the runway once stood was being turned into a housing development. The clinic was walled off between 2023 and 2024, and opened in 2025, according to a local press report from Fars News Agency-Hormozgan, reviewed by NPR.
The opening indicated that the site still had ties to the Iranian Revolutionary Guard. According to the reports, the clinic was opened by IRGC chief Hossein Salami, who was killed in an Israeli strike later that year. A photo appeared to show Salami cutting a ribbon at the clinic.
Lewis said that it’s possible the school and clinic were struck as a result of outdated targeting information.
Speaking beside Trump on Saturday, Defense Secretary Pete Hegseth said the U.S. was continuing to look into what happened at the school. “We’re certainly investigating,” he said. “But the only side that targets civilians is Iran.”
NPR’s RAD team contributed to this report.
Contact Geoff Brumfiel on Signal at gbrumfiel.13
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Iran’s new supreme leader has been selected, says deciding body
The body in charge of selecting a new supreme leader for Iran says it has reached a decision – although the name was not immediately announced.
Israel has warned it would target any figure chosen to replace Ali Khamenei, who was killed in joint US-Israeli strikes on the first day of the war with Iran.
“The most suitable candidate, approved by the majority of the Assembly of Experts, has been determined,” Mohsen Heydari, a member of the selection body, said on Sunday, according to Iran’s ISNA news agency.
Another member, Mohammad Mehdi Mirbagheri, confirmed in a video carried by Iran’s Fars news agency that “a firm opinion reflecting the majority view has been reached”.
Ayatollah Mohsen Heidari Alekasir suggested the figure chosen to succeed the supreme leader would most probably be someone opposed by Washington.
He said the “Great Satan” – Iran’s term for the US – had inadvertently done the assembly “a kind of service” by publicly criticising certain candidates. His remarks appeared to refer to comments by Donald Trump, who said it would be unacceptable for clerics to select Khamenei’s son Mojtaba as successor.
“Someone opposed by the enemy is more likely to benefit Iran and Islam,” Heidari Alekasir said.
The Israeli military warned it would continue pursuing every successor of Iran’s late supreme leader. In a post on X in Farsi, the Israeli military also said it would pursue every person who sought to appoint a successor for Khamenei.
In recent days, Mojtaba Khamenei, 56, emerged as an early frontrunner. His appointment is far from certain as critics would view the move as entrenching a regime accused by rights groups of killing at least 7,000 people in recent months. In addition, a father-to-son succession is also frowned upon within Iran’s Shia clerical establishment, particularly in a republic born from the overthrow of a monarchy in 1979.
Under Iran’s constitution, the 88-member Assembly of Experts is responsible for selecting the country’s supreme leader. Khamenei, who ruled Iran for 37 years, was killed in a US-Israeli strike on Tehran on 28 February.
The clerical meeting to appoint a new leader happened as fighting between Israel and Iran intensified over the weekend. Iranian strikes have hit energy infrastructure across the Gulf and Israeli attacks have targeted oil storage and fuel facilities inside Iran.
A fresh wave of Iranian strikes hit the Gulf on Sunday, with Saudi Arabia, the United Arab Emirates, Qatar, Bahrain and Kuwait all reporting attacks. Saudi Arabia said it intercepted 15 drones, while strikes in Bahrain caused “material damage” to an important desalination plant.
According to reporting by the Washington Post, Fox News, and other US media organisations, Russia has been providing Iran with intelligence that could help it target US military assets in the region. The Guardian is unable to confirm this.
The recent attacks on Gulf states appear to highlight a clash within Iran’s leadership, contradicting remarks made on Saturday by the president, Masoud Pezeshkian, who apologised to countries on the Arabian peninsula and suggested strikes against them would end, provided their airspace and US bases were not used against Iran.
According to analysts, Pezeshkian’s pledge not to strike Gulf states exposed rare public rifts within the ruling elite with Iran’s leadership showing signs of strain, as officials of the regime scrambled to explain and reinterpret the president’s words, which appeared to anger the country’s more conservative factions.
Nonetheless, the Iranian military continued striking the neighbouring countries.
Overnight, US and Israeli strikes hit five oil facilities around Tehran, an Iranian official said, adding that the sites were damaged but the resulting fires were brought under control. Explosions in the capital’s nearby city of Karaj reverberated across the region, and left the area under smoke. Fuel depots on the outskirts of Tehran were set ablaze early on Sunday as US and Israeli forces widened their campaign against Iranian infrastructure.
The news agency Axios reported that the US and Israel had discussed sending special forces into Iran to secure its stockpile of highly enriched uranium at a later stage of the war, according to four sources with knowledge of the discussions.
Throughout the day, Iran launched intermittent barrages of ballistic missiles towards Tel Aviv and central Israel. At least one person was seriously injured after a residential building was hit, according to Magen David Adom, the country’s ambulance service. Most of the missiles were intercepted by Israeli air defences and caused no casualties.
Meanwhile, Israel’s war on multiple fronts continued, with the Israel Defense Forces launching intense strikes on Lebanon, where the Iran-backed armed group Hezbollah is based.
Israel’s assault on Lebanon left four people dead in a hotel blast in Beirut and killed a further 12 in strikes on southern areas of the country. Israel said it was targeting “key commanders” in the Iranian military’s Quds Force.
Lebanon’s health ministry said at least 339 people had been killed in the conflict. The Norwegian Refugee Council said about 300,000 people had fled their homes.
AFP contributed to this report
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