Red Lobster has filed for Chapter 11 bankruptcy in Florida to address financial challenges and streamline operations. The seafood chain will close 48 stores across 27 states and auction off kitchen equipment from these locations. Despite these closures, Red Lobster intends to keep its remaining restaurants open during the bankruptcy process. The company aims to sell its business to a new entity controlled by its lenders. CEO Jonathan Tibus has expressed confidence that restructuring will strengthen the company. "This restructuring is the best path forward for Red Lobster. It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth," said Tibus in a statement. The move follows financial strains from leases, labor costs, and the "Ultimate Endless Shrimp" promotion, which led to losses. The limited-time promotional deal saw guests pick two types of shrimp to enjoy nonstop for $20. It eventually contributed to the $11 million loss in the third quarter of 2023.