Well Known Food Chain in California Filing For Bankruptcy: What Does it Mean?

Many businesses have been struggling over the last few years, and it has led to some surprising companies going out of business or closing a handful of stores across the country. Businesses that were once thriving and thought to never go away, have disappeared entirely. Some major chains have been hit hard since the pandemic, and the effects are still being felt to this day as more and more businesses are having to make tough decisions. Another major chain is feeling this effect, and appears to be the next in line to file for bankruptcy, but what does it mean, and is it the end of a popular food chain that many enjoy? 

Red Lobster Potentially Filing for Bankruptcy

The popular seafood chain Red Lobster is potentially filing for bankruptcy. It is not official yet, but they are currently weighing options and things are leaning that way. The chain suffered a loss of $11 million last year and has seen more bad news since the beginning of the year, having some of its investors pull out of the company. While bankruptcy is typically a term many think of meaning going out of business, that isn't the case. There are options, and Red Lobster is currently exploring all of them. How does this impact the restaurants in California, and should you be concerned about them closing soon? 

Red Lobster in California

There are currently over 600 Red Lobsters in the country, with 33 residing in California. With filing for Bankruptcy, the store will look into ways to cut costs, and shutting down stores is one of those options. While it isn't yet known if they will shut down stores and how many, California would like to see a few close if it were to happen. For those that haven't eaten at Red Lobster before, they offer a variety of seafood, with their specialty being the Ultimate Endless Shrimp Deal, and of course, they are best known for their Cheddar Bay Biscuits. For more on their menu and what you would be missing out on, make sure to click the link above. 

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While nothing has officially been determined yet, do not be surprised to see an official announcement coming soon, that the popular seafood chain has filed for bankruptcy. The hope is that like many other chains, they will be able to keep most of their locations open and remain in business, but only time will tell. In the meantime, make sure to get to your nearest Red Lobster and support them, so they can remain in business going forward and eat an extra Cheddar Bay Biscuit just in case.