New Delhi, Aug. 28 -- Red Lobster continued to shrink its footprints in 2026 following bankruptcy. According to Inc. report, the seafood chain's footprint has shrunk to approximately 540 restaurants across the United States (US), down from over 700 before its bankruptcy.

According to a court filing, reported by Bloomberg, Red Lobster leased 687 locations and spent $190.5 million on lease obligations in 2023 alone before bankruptcy, with many of the leases priced above market rates. Guest traffic fell about 30% between 2019 and 2024.

In May 2024, Red Lobster filed for Chapter 11 bankruptcy, closing more than 100 locations that year after its "Ultimate Endless Shrimp" promotion contributed to an estimated $19 million loss.

Notably, earli...