Red Lobster weighing Chapter 11 bankruptcy
Feds eye antitrust suit against Live Nation
The Justice Department may file an antitrust complaint as soon as next month aimed at forcing Live Nation Entertainment Inc. to spin off its Ticketmaster ticketing business, according to three people familiar with the matter.
The agency has been investigating the entertainment giant for years amid concerns Live Nation has illegally tied its concert promotion services to use of Ticketmaster, in violation of the terms of the 2010 settlement that allowed it to acquire the ticketing company. Two of the people, who asked not to be named discussing the confidential probe, said the timing of a complaint could still slip.
Several state attorneys general have also been involved in the investigation and could join the Justice Department in an eventual suit, the people said. Live Nation shares fell as much as 9.2% Tuesday morning in New York, the most since last July.
A Justice Department spokesperson declined to comment. A spokeswoman for Live Nation didn't immediately respond to a request for comment.
Ticketmaster, the largest U.S. ticketing company, merged with Live Nation, the biggest concert promoter, 14 years ago following a lengthy antitrust investigation. Prime memberships gain 8% to a new high
Amazon.com's Prime subscription service hit a new high of 180 million U.S. shoppers in March, an increase of 8% from a year earlier, according to Consumer Intelligence Research Partners, which has tracked Amazon memberships since 2014.
The increase shows Amazon's promise of fast delivery on a wide assortment of goods continues to have strong appeal with shoppers grappling with inflation despite greater online competition from Walmart Inc. and Chinalinked companies such as
TikTok Shop, Shein and Temu.
U.S. consumers pay Amazon $140 a year or $15 per month for Prime subscription, which includes shipping discounts and the adsupported Prime Video streaming service.
Prime membership growth flattened after the pandemic, and Consumer Intelligence Research Partners last year predicted the online retailer had hit a plateau. The most recent data, showing 75% of U.S. shoppers have Prime memberships, is a clear indication that Amazon is still gaining new subscribers.
The increase suggests U.S. consumers believe “their Amazon shopping habit justifies the investment in Prime membership,” the Chicago research firm said Tuesday in its report.
Red Lobster is mulling a Chapter 11 bankruptcy filing as it looks to restructure its debt, according to people with knowledge of the matter.
The seafood restaurant chain has been getting advice from law firm King Spalding. The dining chain is considering a possible Chapter 11 filing to shed some long-term contracts and renegotiate a swath of leases, the people said.
Red Lobster's cash flows have been weighed down by onerous leases and labor costs, among other issues. Restructuring discussions are ongoing and a final decision hasn't been made, Bloomberg sources said. Filing for bankruptcy would allow the company to keep operating while it works on a debt-cutting plan.
Messages left with Red Lobster and King Spalding were not returned.
Red Lobster traces its roots to a single restaurant in Lakeland, Florida, in 1968, according to its website. The company introduced its popular cheese-flavored biscuits in 1992.
Compiled from Bloomberg and Associated Press reports.