US restaurant chain Red Lobster goes bust after shrimp offer backfires

The Florida-based company succumbed to onerous leases, high labour costs, and an unlimited shrimp promotion

Red Lobster last week shuttered 93 underperforming stores. Picture: Bloomberg

Seafood restaurant chain Red Lobster has gone bust, succumbing to onerous leases, high labour costs, and a disastrous unlimited shrimp promotion.

The Florida-based company filed for bankruptcy and is listing assets and liabilities of $1bn (€920m) to $10bn each in its bankruptcy petition. The filing allows the company to keep operating while it works out a plan to repay creditors.