Company identified Pittsburgh location as one of potentially 60 locations to shut down
Red Lobster has over $1 billion in debt and less than $30 million in cash on hand
Red Lobster in Pittsburgh may close due to bankruptcy
Pittsburgh's Red Lobster on list of locations to potentially close in Pennsylvania
Red Lobster has announced the restaurants in Pennsylvania that may close. One of those locations is in Pittsburgh. The restaurant chain recently announced it wants to close several dozen more restaurants following its bankruptcy, and it has identified which ones are in danger of shutting down if the court approves its plan.
The Red Lobster on McKnight Road in Pittsburgh is one of the dozens across the country on the chopping block. Red Lobster said that it had more than $1 billion in debt and less than $30 million in cash on hand. It plans to sell its business to its lenders, and in turn, it will receive financing to stay afloat. Part of its plan is to close some locations of its nearly 600 restaurants in the meantime.
A few weeks prior to its bankruptcy, it abruptly closed around 50 locations across the United States. The new list of locations in danger of closing was revealed in court filings last week, and all could be shuttered if they can't renegotiate their leases.
Pennsylvania935 Wayne Avenue, Chambersburg425 W. DeKalb Pike, King of Prussia4766 McKnight Road, Pittsburgh
Red Lobster is planning to close more restaurants after filing for bankruptcy in May.
At least three Red Lobster restaurants in Pennsylvania - 935 Wayne Ave. in Chambersburg, 425 W. DeKalb Pike in King of Prussia, and 4766 McKnight Road in Pittsburgh - are among those that could close.
Red Lobster had over $1 billion in debt and less than $30 million in cash on hand when it filed for bankruptcy.
Red Lobster’s flagship restaurant in New York City’s Times Square may close as part of the chain’s bankruptcy restructuring.
The Times Square location is on a lease that expires on June 30, and the landlord is seeking $2.2 million in annual rent for the space.
Red Lobster has more than $1 billion in debt and less than $30 million in cash on hand, according to its bankruptcy filing.
Red Lobster owes its 36,000 employees nearly $17 million in unpaid wages.
Thai Union Group, a seafood supplier, bought 49% of Red Lobster in 2020 but is parting ways with the company due to ‘negative financial contributions’ to Thai Union and its shareholders.
Accuracy
Red Lobster's flagship restaurant in New York City's Times Square may close as part of the chain's bankruptcy restructuring.
The company secured $100 million in financing commitments from existing lenders as part of the bankruptcy.
The Thai Union Group, a seafood supplier, bought 49% of Red Lobster in 2020 but is parting ways with the company due to ‘negative financial contributions’ to Thai Union and its shareholders.
Red Lobster had launched a $20 all-you-can-eat shrimp promotion that led to a quarterly loss of $11 million, and later raised the price to $22 and then $25.
The company has entered bankruptcy proceedings.
Deception
(80%)
The article contains selective reporting as it only mentions the financial struggles of Red Lobster and the potential closure of their Times Square location without providing any context or mention of their efforts to renegotiate leases or secure financing. It also implies that the Thai Union Group's involvement in Red Lobster led to their financial troubles, but it does not provide any evidence for this claim.
The chain abruptly closed nearly 100 stores last month and suggests another 135 could shutter if it cannot renegotiate their leases.
Red Lobster is investigating Thai Union’s role in pushing the promotion as a way to steer more business its own way, according to court filings.
Fallacies
(95%)
The article contains an appeal to authority fallacy when it mentions Red Lobster's bankruptcy filing reporting that the Times Square location is one of over 100 additional locations that could close. The author does not provide any evidence or reasoning to support this claim beyond the bankruptcy filing, which is an external source. Additionally, there are some instances of inflammatory rhetoric used in the article such as 'poor management' and 'costly all-you-can-eat shrimp deals', but these statements are not fallacious as they are based on facts presented in the article.
] Red Lobster’s bankruptcy filing, the high-profile Times Square flagship is one of more than 100 additional locations that could soon shut its doors.[
The Thai Union Group, a Bangkok-based seafood supplier, bought 49% of Red Lobster in 2020 as part of a consortium from the private-equity firm Golden Gate Capital. Preceding the bankruptcy filing, the supplier announced it would be parting ways with Red Lobster due to ‘negative financial contributions to Thai Union and its shareholders.[
Management eventually raised prices on the shrimp deal to $25. Jonathan Tibus, Red Lobster’s fifth chief executive since 2021, blamed the promotion on previous CEO Paul Kenny, who made the decision in 2023 ‘despite significant pushback from other members of the company’s management team.[
Red Lobster is investigating Thai Union’s role in pushing the promotion as a way to steer more business its own way, according to court filings.
