Serial entrepreneur and Tesla CEO Elon Musk expressed his sorrow over the bankruptcy filing of the popular seafood chain, Red Lobster.
What Happened: Red Lobster has filed for Chapter 11 bankruptcy. This news follows the company's announcement last week about its plans to shutter over 50 branches nationwide, reported Business Insider.
Musk, known for his fondness for the restaurant, expressed his regret over the news. "Too bad (sigh). I have some fond memories from a long time ago of eating at Red Lobster," he shared in a recent post on X, formerly Twitter.
Too bad (sigh). I have some fond memories from a long time ago of eating at Red Lobster.
— Elon Musk (@elonmusk) May 20, 2024
Red Lobster, famous for its "Ultimate Endless Shrimp" promotion, has been struggling financially. The decision to make this promotion a permanent fixture on their menu led to significant operational losses.
Despite hiking the price of the promotion, the company's financial troubles continued. The bankruptcy filing comes amidst a challenging period for the food and beverage sector, which is grappling with escalating costs and a rapidly evolving consumer landscape.
Why It Matters: Red Lobster filed for Chapter 11 bankruptcy protection to reduce its number of locations and seek a buyer, citing significant debt and long-term leases. Red Lobster closed 93 locations and plans to reject 108 leases, aiming to restructure under new CEO Jonathan Tibus amid a challenging macroeconomic environment, according to a prior report.
Musk's lament over Red Lobster's bankruptcy is not surprising given his known preference for indulgent food. As reported by Benzinga in 2023, Musk confessed to eating a donut every morning, despite being raised by a dietician. "I'd rather eat tasty food and live a shorter life," Musk had stated.
This is not Musk's first encounter with the food industry. In 2024, a restaurant owner lost a lengthy legal dispute with Musk's Tesla over the trademark "Tesla Chicken & Pizza."
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