ORLANDO: Red Lobster has cut some of its corporate-level workforce and is moving to renegotiate costly leases, pressuring its post-bankruptcy plan to return to steady profitability, according to sources.
Dozens of low-performing locations have dragged down the company’s overall results, which are little improved from before its bankruptcy last year, said the sources.
A Red Lobster spokeswoman confirmed in an email that the company trimmed 10% of its corporate staff and cut about 200 staff at the restaurant level.
Fortress Investment Group, previously a lender to Red Lobster, led an acquisition of the chain in bankruptcy through a debt restructuring in 2024.
The company faltered in the face of high rents, broad declines in the casual dining sector and mismanagement by its former owner, Thai Union, which implemented a costly “Ultimate Endless Shrimp” promotion. — Bloomberg
