Connect with us

News

Red Lobster files for bankruptcy after missteps including all-you-can-eat shrimp

Published

on

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


hide caption

toggle caption

Advertisement

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.

Advertisement

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.

Advertisement

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.

Advertisement

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.

Advertisement

“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.

Advertisement

News

Michigan governor threatens to pull troops from D.C. if used for Trump task force

Published

on

Michigan governor threatens to pull troops from D.C. if used for Trump task force

Members of the National Guard stand in front of a large image of U.S. President Donald Trump that hangs from the the Robert F. Kennedy Department of Justice Building on May 18, 2026 in Washington, D.C.

Andrew Harnik/Getty Images North America


hide caption

toggle caption

Advertisement

Andrew Harnik/Getty Images North America

WASHINGTON, D.C. — In a strongly worded letter to the head of Michigan’s National Guard, Gov. Gretchen Whitmer reiterated troops from her state are only to be used for operations surrounding America 250 celebrations in Washington, D.C., and not for President Trump’s long-running — and controversial — joint task force to fight crime. She said that she would pull her troops from the city if that is not the case, in the letter obtained by NPR.

“Please take all necessary measures to ensure the Michigan National Guard is only supporting the narrow and limited America 250 Mission and is in no way supporting the D.C. Safe and Beautiful Mission,” wrote Gov. Whitmer, referencing the official name for the federal task force.

Trump deployed hundreds of troops to Washington, D.C., in August of 2025, in what experts said was a stunning departure from governing norms. He said he did so to address rampant crime, despite declining crime rates at the time. The number of troops in the city has increased over time to more than 4,800 from Washington, D.C. and almost two dozen states, which until recently were exclusively Republican-led.

Advertisement

Michigan — which has 161 guard members currently in the city — is one of four Democratic-led states that sent members of their National Guard to D.C. in recent weeks, ahead of an influx of tourists for America 250 celebrations. North Carolina and Kentucky each sent one member of their guard, while Minnesota sent more than a hundred last week.

Kentucky confirmed to NPR Monday that it had recalled its one guard member over the weekend, after that member was “diverted to the task force by the federal government without the knowledge or consent of Gov. Beshear of the Kentucky Guard,” Scottie Ellis, a spokesperson for Gov. Beshear, wrote to NPR in an email.

When contacted by NPR, spokespeople for each respective Democratic governor’s office made it clear that their guard members were sent to help specifically with America 250, not for law enforcement purposes as part of the larger ongoing federal joint task force operation. All four states have been clear about their opposition to the Trump administration’s ongoing deployment of National Guard troops to D.C., filing an amicus brief in support of litigation challenging it as recently as May.

Continue Reading

News

Senate Ethics Committee dismisses complaint against Sen. Ruben Gallego

Published

on

Senate Ethics Committee dismisses complaint against Sen. Ruben Gallego

Sen. Ruben Gallego, D-Ariz., walks out of the Senate chamber on Oct. 1, 2025.

Andrew Harnik/Getty Images


hide caption

toggle caption

Advertisement

Andrew Harnik/Getty Images

The Senate Ethics Committee has dismissed a complaint brought against Sen. Ruben Gallego involving allegations of campaign finance violations and potential sexual misconduct.

The allegations against the Arizona Democrat were brought to the committee in April by a fellow member of Congress, Rep. Anna Paulina Luna, R-Fla. But in a letter to Gallego dated June 26, the committee said it had uncovered no wrongdoing.

“Based on the investigation of the Committee, the Committee did not find evidence that your actions violated Federal law, Senate rules, or related standards of conduct,” the panel wrote.

Advertisement

The panel also said it appreciated Gallego’s “full cooperation” throughout the investigation.

Gallego welcomed the findings, saying in a statement that the dismissal “reaffirms what I have said about these accusations from the beginning: they were right-wing conspiracies peddled by far-right activists like Anna Paulina Luna, the White House, and their allies.”

“I look forward to an apology from Rep. Luna for weaponizing the ethics process while refusing to investigate historic corruption that’s making life harder for families,” he continued.

Whispers about potential misconduct by Gallego began to circulate in April following the resignation of Rep. Eric Swalwell, D-Calif. Swalwell stepped down in response to a swell of sexual assault and misconduct allegations. NPR has not independently verified the allegations against Swalwell, but he has adamantly denied them.

Swalwell and Gallego were close friends, and during Swalwell’s short-lived 2020 presidential campaign, it was Gallego who served as campaign chair.

Advertisement

In the immediate aftermath of Swalwell’s resignation, Gallego denied knowledge of any alleged history of sexual misconduct, though he acknowledged to reporters that their close friendship may have made it difficult for him to accept rumors about Swalwell and his behavior toward women.

“My friendship with him, our family’s friendship together with him, clouded my judgment, and I was wrong — I deeply, deeply regret that,” Gallego said.

Advertisement
Continue Reading

News

Native Americans celebrate victory at the Battle of Little Bighorn, 150 years later

Published

on

Native Americans celebrate victory at the Battle of Little Bighorn, 150 years later

Horse mounted riders circle atop a hill at the Battle of Little Bighorn National Monument, near Last Stand Hill, on June 25.

Kadin Mills/NPR


hide caption

toggle caption

Advertisement

Kadin Mills/NPR

CROW AGENCY, Mont. — Under the expansive Montana sky, hundreds of members and descendants of 19 tribal nations gather at one of America’s most famous battlefields. They’re here to watch as Native American riders on horseback charge onto the same land their ancestors did 150 years ago when they defeated the U.S. Army’s 7th Cavalry under the command of Lt. Col. George Armstrong Custer.

The riders race across the dry landscape — kicking up clouds of dust before circling at the top of a hill at Little Bighorn Battlefield National Monument. Some of them are wearing headdresses and regalia, others are wearing tank tops and T-shirts. Many of them are carrying their tribal flags in a show of unity — the same unity that made possible their swift victory on June 25, 1876.

“It was so important then, 150 years ago. … It’s important today still,” said Gaby Strong, who is Sisseton-Wahpeton and Mdewakanton. “Our victories are still possible.”

Advertisement

Custer’s goal was to force Native Americans onto reservations. After the 1874 discovery of gold in the Black Hills, Indigenous peoples living off reservations were directed to report to their U.S. field offices, called Indian Agencies, or be deemed hostile.

Native American leaders, including Crazy Horse and Sitting Bull, organized villages and tribes together in a resistance effort.

Several battles broke out in what is now Montana and South Dakota as military forces attempted to push remaining groups onto reservations.

“Crazy Horse, he went from band to band, leader to leader, to tell them about this idea of our relatives coming together for a much greater cause than themselves,” said Christopher Eagle Bear. He is Sicunga Lakota from the Rosebud Sioux Tribe.

In 1876, Custer was tracking a nomadic village of various peoples, including the Oceti Sakowin (Sioux), Cheyenne and Arapaho. Custer was tracking that camp with the help of about three dozen Arikara and Crow scouts. Scouting for the U.S. government was a common practice among many tribes.

Advertisement

Custer divided his forces of around 700 men into three columns, hoping to surround the village.

Continue Reading
Advertisement

Trending