Red Lobster and 14 affiliated debtors commenced their Chapter 11 cases yesterday, 19 May, in the US Bankruptcy Court for the Middle District of Florida. The docket can be found here.

According to the first day declaration of Jonathan Tibus, the CEO of Red Lobster, the company enters bankruptcy after facing a number of financial and operational challenges, including macroeconomic challenges, a “bloated and underperforming restaurant footprint”, increased competition and “failed or ill-advised strategic initiatives”, including a cost of $11m to Red Lobster and “burdensome supply obligations” for the wildly expensive and popular “Ultimate Endless Shrimp” program.