So, you might have heard that Red Lobster went belly-up because of its Endless Shrimp deal—you know, the one where you could eat all the shrimp you wanted until you regretted every life choice that led you there. But according to Senator Elizabeth Warren (D-Mass.), that's just the surface-level story. The real culprit, she says, is private equity's "endless greed." In a social media post on Monday, Warren revived a line of attack she's been using for months, arguing that if you look a little deeper, Red Lobster's downfall wasn't about shrimp; it was about financial engineering gone wrong.

Warren posted her message alongside a screenshot of a Bloomberg report noting that Red Lobster is planning to bring back a limited-time version of its Endless Shrimp promotion as soon as this month. That's the same offer many commentators blamed for the chain's 2024 bankruptcy filing, especially after a costly permanent version helped push up losses. But Warren insists the damage was done much earlier, when private equity owners followed what she calls a familiar playbook: buy a functioning company, load it with debt, sell off valuable assets, and leave the operating business to struggle under rising costs.

Back in June 2024, after Red Lobster first collapsed, Warren made the same point. She noted that a private equity firm bought the chain in 2014, "loaded Red Lobster up with debt," and saddled it with high real-estate costs through a sale-leaseback deal. In her view, that's the real story—not whether customers could eat too many shrimp.

This isn't just about one seafood chain, though. Warren has frequently used Red Lobster as a case study to argue for her Stop Wall Street Looting Act, which she reintroduced with other lawmakers in 2024. Her office says the bill would make private equity firms more responsible for the debts and obligations of the companies they control and curb their ability to strip assets while avoiding liability. More recently, she's broadened that critique to other failed or struggling chains, including Joann (JOAN), Toys "R" Us, and Sears. In a video on her Senate website, she said private equity "guts everything," buying companies, piling on debt, stripping assets, and then walking away rich while workers and communities deal with the wreckage.

So, next time you hear about a company going under, maybe don't just blame the shrimp. According to Warren, it's worth asking who was holding the financial fishing rod.