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Red Lobster has always been a staple for Black southern folk as well as pop culture. Who could forget in 2016 when Beyoncé (who is from Houston) famously stated on “Formation”: “When he f**k me good I take his ass to Red Lobster?”

The Lobster pizza has a hook on some people but nothing has gripped us like the cheddar bay biscuits. But could this be the end of our beloved cheddar bay biscuits? Red Lobster is reportedly considering filing Chapter 11 bankruptcy in an attempt to restructure its debt. According to a report from Bloomberg, the popular seafood chain has been getting legal advice from King & Spalding.

Bankruptcy is also being considered to combat the cost of leases the chain has under its name as well as rising labor costs. Last month, Jonathan Tibus was hired as the company’s new CEO, a move which many folks considered a precursor to selling the brand.

Tibus, who previously worked as a managing director with restructuring firm Alvarez & Marsal, is Red Lobster’s third CEO in the past two years. In 2022, Red Lobster lost $33 million when traffic slowed down as expenses skyrocketed. The chain wound up closing 16 restaurants.

Last summer, the company also introduced a $20 all-you-can-eat shrimp deal. Though it was a hit with customers, it also cost the chain more than $11 million in one quarter alone.

Thai Union Group, which at one time owned just 25% of the company, took control of Orlando-based Red Lobster in 2021. In a statement on its website, the firm stated that the restaurant’s “ongoing financial requirements no longer align with Thai Union’s capital allocation priorities” after writing down their share.

“The combination of COVID-19 pandemic, sustained industry headwinds, higher interest rates and rising material and labor costs have impacted Red Lobster, resulting in prolonged negative financial contributions to Thai Union and its shareholders,” Thai Union Group chief Thiraphong Chansiri explained.

We hope that this matter gets resolved quickly, since those frozen grocery store cheddar bay biscuits just won’t cut it.