On Sunday, Red Lobster announced it would be filing for Chapter 11 bankruptcy, causing Endless Shrimp enthusiasts and Cheddar Bay Biscuit fanatics to lose their seafood-loving minds.
News of the filing came after the seafood restaurant chain abruptly closed around 100 of its locations a couple of weeks ago, auctioning off furniture and equipment in the process.
Employees of those restaurants claimed the closures were unexpected, with many stating they were made aware they no longer had jobs by a text or phone call the day after Mother's Day.
The company had been struggling financially for quite some time, although the chain suffered its greatest losses over the last year.
In response to deficits over the last few years, minority owner Thai Union Group divested from the company, citing "sustained industry headwinds, higher interest rates, and rising material and labor costs."
Red Lobster's last-ditch effort for a comeback was the 2023 resurrection of the patron-favorite all-you-can-eat shrimp for $20.
While the promotion brought traffic, diners took full advantage of the deal, ultimately costing Red Lobster $11 million in quarterly losses.
But they want you to know it's okay.
Red Lobster took to social media to reassure their die-hards that their Chapter 11 filing won't keep them from their beloved biscuits.
They began their post:
"For more than five decades Red Lobster has been a part of your family’s life. We’ve been there for your celebrations, big and small. We may be the place that you first discovered your love of seafood. Or where you met the love of your life on a first date."
"Birthdays, graduations, anniversaries and yes, weddings. We’ve been here for them all."
"And Red Lobster is determined to be there for these moments for generations to come. And that’s why we filed for Chapter 11 bankruptcy protection."
The chain went on to explain what that means for both the company and their customers.
"Bankruptcy is a word that is often misunderstood."
"Filing for bankruptcy does not mean we are going out of business. In fact, it means just the opposite."
"It is a legal process that allows us to make changes to our business and our cost structure so that Red Lobster can continue as a stronger company going forward."
They then addressed the recent closures.
"As many of you know, we recently made the tough decision to close a number of our restaurants."
"The truth is, some of the world’s most beloved brands like Delta and Hertz have used this same process to protect their futures and their customers stood with them and rooted them on."
"And because of that, they emerged stronger."
The post finished by expressing excitement for this "new chapter."
"Together, we have a lot worth rooting for. We’ve made delicious, high-quality seafood accessible for generations."
"Many of you tried lobster for the first time at our restaurant. We’ve brought you Lobsterfest and Crabfest over the years. And, of course, no meal is complete without Cheddar Bay Biscuits."
"We are here and ready to continue making memories with you. Join us. Dine with us. Root for us."
"Together, we can write a new chapter."
To say fans were relieved is an understatement, and biscuit lovers everywhere rejoiced.
@redlobster/Instagram
@redlobster/Instagram
@redlobster/Instagram
@redlobster/Instagram
@redlobster/Instagram
@redlobster/Instagram
And while people on social media appreciated the company's letter to their customers...
@redlobster/Instagram
@redlobster/Instagram
... many felt former employees deserved the same respect.
@redlobster/Instagram
@redlobster/Instagram
@redlobster/Instagram
@redlobster/Instagram
We hope seafood lovers will sleep well tonight knowing their Cheddar Bay Biscuits are safe.
@jaketapoer/Bluesky
@BillAckman/Twitter