Struggling restaurant chain Red Lobster is considering filing for bankruptcy as high costs and low sales ground the business.

The brand is reportedly eyeing up a possible Chapter 11 filing to restructure its debt, allowing it to discard long-term contracts and renegotiate new leases.

Red Lobster's cash flows have been hit by expensive leases and high labor costs.

It comes after the company last year reported record losses of $11 million, which its CFO partly blamed on its unlimited shrimp deal.

The chain, which started as a single restaurant in Lakeland, Florida, in 1968 has around 650 locations across almost all states. It's famous for its cheese-flavored biscuits.