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Red Lobster is considering filing for Chapter 11 bankruptcy as the company deals with significant debt due to labor costs and building leases. Filing for Chapter 11 bankruptcy would allow the seafood company to restructure its debt and be freed from several long-term leases. Bankruptcy will allow the company to continue operations while having a structured plan to pay off the debt. Red Lobster management has changed between various groups in recent years, and Thai Union Plc became a majority stakeholder in Red Lobster and took over management of the restaurant chain in 2021. Thai Union Plc wrote down its stake in Red Lobster this year and claimed that the amount of financial support Red Lobster needs is not a good fit for the company’s capital allocation anymore. Fortress Investment Group is also a major stakeholder in Red Lobster and has been a part of discussions regarding bankruptcy and the future management of Red Lobster.