Red Lobster considers closing additional 129 restaurants as part of bankruptcy process

Red Lobster is thinking about closing more restaurants in the United States. They might shut down 129 more locations if a court agrees. The company already closed 99 restaurants last month. They say these places are losing money and need to be sold. Red Lobster has a lot of debt, about $1 billion, and not much cash, only $30 million. They are trying to pay off their debt by closing some restaurants. The CEO of Red Lobster says they are facing financial problems. They have too many restaurants that are not making enough money. They also have competition from other restaurants. The number of customers has dropped by 30% since 2019. Red Lobster announced they would close around 50 restaurants in May and might file for bankruptcy. Red Lobster wants to close more restaurants after filing for bankruptcy. They are in danger of closing if they can't make their leases cheaper. The company has a lot of debt and not enough cash. They are trying to restructure to become stronger. Red Lobster is trying to sell some restaurants quickly to focus on their growth. Red Lobster might have to close over 100 more restaurants if they can't lower their rent. They closed 93 locations and filed for bankruptcy in May. The company blames their financial problems on inflation and failed promotions. They are struggling to make a profit, even after trying different deals to attract customers.