The magazine reports that the restaurant's revenue dropped 4.9% during the second quarter. However, selling Red Lobster solves only part of the problem. The move is designed to help the firm through a corporate restructuring, said owner and CEO Brad Friedlander, who filed the case in the U.S. Bankruptcy Court for the Northern District of Ohio last Friday, Sept. 28. This is useful in estimating the financial strength and credit risk of the company. Accounting and Financial Analysis in the Hospitality Industry (1st Edition) Edit edition. LZ Granderson grew up poor, and a real treat once or twice a year was to go to Red Lobster; The chain is in financial trouble, … Red Lobster was the biggest culprit. Same-store sales, a measure of performance at restaurants open a year or more, dropped 3.5 percent at Olive Garden and 5.6 percent at Red Lobster over the quarter. Red Lobster developed a business plan and presented it to a number of private equity firms. But the name origin of Red Lobster remains unclear, as a source claimed Bill's wife Mary came up with the name during a brainstorming session, Mental Floss explains, and another source said the name came from a printer that created Red Lobster's first menus. Olive Garden, which will represent 60% of Darden revenue after the sale is closed, is in a similar position. Thank you very much. Red Lobster, the world’s largest seafood restaurant chain, is plotting a new course with a new captain at the helm. In May 2014, Darden announced the sale of the company for $2.1 billion to Golden Gate Capital, a San Francisco-based firm that had acquired California Pizza Kitchen and also is an owner of Payless ShoeSource.It was the highest bidder. It seems like Bill Darden had something for the names of colorful animals. Not even the breadsticks, it appears, can save Olive Garden from financial turmoil. That's why a hedge fund has launched an activist campaign to break up the company. Josh Olshansky, managing director at Golden Gate Capital, … Story highlights. Determine whether Red Lobster Management grew or shrank during the last recession. And its sister chain under parent company Darden Restaurants' umbrella, Red Lobster, doesn't appear to be faring much better. Red Lobster, 40-year-old chain of seafood restaurants, has just completed a market study to identify opportunities to change their target customer segment. Compare how recession-proof Red Lobster Management is relative to the industry overall. Before Red Lobster, there was Green Frog. Thank you Red Lobster. Beachwood's Red Restaurant Group — the parent company of Red, The Steakhouse and Moxie, The Restaurant brands — has filed for Chapter 11 bankruptcy protection.. Thai Union reported a drop in net profit in the first quarter of this year, partially due to a loss from currency exchange and lower income from American dining restaurant chain Red Lobster Seafood. 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