Red Lobster is shuttering another 23 locations amid its ongoing Chapter 11 bankruptcy proceedings.
Transcript:
I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
The Dow hovers near record highs as investors await earnings from Nvidia and look ahead to the Federal Reserve’s favorite inflation gauge, known as the PCE index. Investors are also digesting a pick-up in consumer confidence, which jumped to a six-month high in August, according to the Conference Board.
In other news: Red Lobster is shuttering even more locations as part of its bankruptcy process.
Court records show the struggling casual dining chain will close an additional 23 locations – on top of the more than 100 restaurants it shut earlier this summer. The process will leave Red Lobster with about 500 eateries, down from 650 before the start of the year.
Once an iconic American brand, Red Lobster is now trying to right the ship after falling on hard times. Several missteps including a money-losing all-you-can-eat shrimp addition to the menu blew an $11 million hole in the company’s business. At the same time, like many in the restaurant business, the chain is struggling with higher food costs, labor shortages, and a budget-conscious consumer.
As part of the bankruptcy reorganization, Red Lobster has put itself up for sale, secured a $100 million loan, and announced an industry veteran as its new CEO.
Red Lobster filed for Chapter 11 bankruptcy in May.
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