Popular fast-food chain Red Lobster has reportedly filed for bankruptcy after relenting to its unbearable operational costs, including an accrued billion-dollar debt.

The seafood restaurant chain filed for “Chapter 11 protection” on listing assets and liabilities of $1 billion to $10 billion each in its bankruptcy petition on Sunday, Yahoo Finance reports.

The filing allows the company to remain operational while it works out a payment plan to its creditors. In addition to the 10-figure debt, it had less than $30 million in cash, influencing its bankruptcy filing.

It’s understood that the company intends to sell its business to its lenders as part of an arrangement to receive $100 million in financing during its transitionary phase.

The company is expected to close several of its 578 restaurants across North America.

Despite a reported annual estimated revenue of $2 billion in annual sales, mismanagement competition, inflation and are among the reported factors behind the franchise’s financial collapse.

The finances of the restaurant chain had been in decline for several years, with diners down around 30% since 2019, Chief Executive Officer Jonathan Tibus wrote in court documents, as per CNN.