Red Lobster to Close Several Locations
On May 19th, Red Lobster announced it was voluntarily filing for Chapter 11. At the time the restaurant stated that “Rob Lobster’s restaurant will remain open and operating as usual during the Chapter 11 process…” Red Lobster followed up this press release with a social media post stating “…We have a lot worth rooting for. We’ve made delicious, high-quality seafood accessible for generations… We are here and ready to continue making memories with you.” However, Red Lobster closed down 99 restaurants across the United States, as reported by USA Today. This can be confirmed on the restaurant’s location finder website, as many restaurants are listed as “temporarily closed.”
Thai Union Group became the leading shareholder of Red Lobster in 2020, and even after promises to stay out of the business, Red Lobster began receiving much of its supply from Thai Union Group. Nathaniel Meyersohn of CNN Business discussed the fallout of Red Lobster’s business decisions and management changes over the last few years, stating “Thai Union’s damaging decisions drove the pioneering chain’s fall.” While the future of Red Lobster is unknown, some will still be able to visit their favorite seafood restaurant, while others will have to find new options.
Stock Market Slow to End the Week
Friday afternoon ended an odd week on Wall Street. While DJI and S&P500 had record highs, Thursday and Friday saw significant dips. DJI closed at $39,063 after opening the week at $39,989 and hitting over $40,000 for the first time Monday afternoon. The S&P 500 also had an interesting week, hitting highs mid-week after opening the week at $5,305, but ended the week Friday afternoon just a dollar short closing at $5,304. NVDA continued its strong week, closing Friday afternoon at $1,064 after an opening of $937. We will wait to see how the market responds next week to see if a long-term positive trend continues, or if the end of the week meant that investors had some worry in the economy.
Justice Department Suing Ticketmaster
The U.S. Department of Justice announced Thursday, that it would be suing Live Nation Entertainment Inc. and Ticketmaster for “monopolization and other unlawful conduct that thwarts competition in markets across the live entertainment industry.” The lawsuit “seeks to restore competition in the live concert industry, provide better choices at lower prices for fans, and open venue doors for working musicians and other performance artists.” Many have noticed a steep hike in concert/live event tickets over the last few years, and while inflation would be easy to blame, the Justice Department sees this issue as one that is caused by the monopoly of this product.
Why it All Matters
The economy is moving in many different directions at once. While inflation has yet to be under control, there seems to be positive movement in some aspects of the economy. However, well-known establishments like Red Lobster and Ticketmaster are still major factors in many lives and will continue to operate in the U.S. But large corporations can still take a hit in the economy, so it’s important always to protect yourself and live financially free. Check out our resources on Stocks and Trading and Finance Management for more information on securing financial wellness.
