Orlando-based Red Lobster is considering whether to file for bankruptcy, according to Bloomberg, quoting unidentified sources familiar with the matter.

Red Lobster has been struggling financially for years. The company’s main investor, Thai Union, cut ties with the seafood chain earlier this year and said it would be looking for a buyer.

If it were to file for Chapter 11 restructuring, the company could continue to operate its 650 restaurants while it restructures its debt. Bloomberg reported that talks were ongoing and not yet final.

A $20 “endless shrimp” promotion that began last summer was so popular that it contributed to the company’s $11 million loss in the third quarter. Thai Union said the company would lose more than $20 million for the entire year.

Red Lobster has had three CEOs in the past two years.

When CEO Kelli Valade resigned in 2022 after just eight months at the helm, one industry analyst called the quick departure “very, very, very bad.”

The first Red Lobster was opened by Bill Darden in 1968 in Lakeland. In 1970, General Mills bought the chain and helped it to grow rapidly.

General Mills spun off its restaurant business as Orlando-based Darden Restaurants in 1995. Red Lobster went private in 2015 and later moved its headquarters to downtown Orlando.