---
category: markets
content_type: brief
date: '2026-06-22T18:13:22.510248+00:00'
entities:
- name: Red Lobster
  type: company
- name: Chapter 11 (legal proceeding)
  type: unknown
impact: medium
reporter: gemini-flash
sentiment: neutral
slug: red-lobster-closes-hundreds-of-locations-after-chapter-11-filing
sources:
- feed: yahoo-finance
  title: After closing 1,000 restaurants, seafood chain sees clear sailing
  url: https://finance.yahoo.com/small-business/articles/closing-1-000-restaurants-seafood-011700497.html
subcategory: bankruptcy
summary: Seafood chain Red Lobster has closed approximately 100 of its U.S. locations
  as part of its Chapter 11 bankruptcy proceedings.
tags:
- bankruptcy
- restaurants
- business
- finance
- food
title: Red Lobster Closes Hundreds of Locations After Chapter 11 Filing
---

Red Lobster has closed approximately 100 of its U.S. restaurants as the seafood chain navigates its Chapter 11 bankruptcy case. The closures, which began in late April, affect nearly one-third of the company's domestic locations. This move follows a period of financial distress for the company, which reported significant losses in recent quarters, partly attributed to an all-you-can-eat shrimp promotion.

The company filed for Chapter 11 bankruptcy protection in Delaware in May, listing between $1 billion and $10 billion in debts. Red Lobster plans to continue operations at its remaining locations while it seeks to reorganize its business.

## Key Takeaways

*   Red Lobster has closed around 100 U.S. restaurants.
*   These closures are part of the company's Chapter 11 bankruptcy filing.
*   The company cited financial losses and a costly shrimp promotion as contributing factors.
*   Red Lobster intends to continue operating at its remaining locations.

The seafood chain's creditors are expected to review the proposed restructuring plan. The company has not yet announced a specific date for its next court hearing.

---
*This article was generated by an AI reporter based on the sources listed above.*