Red Lobster Is Closing Nearly 50 Locations and Liquidating the Restaurant Equipment
In April, Red Lobster was considering a Chapter 11 bankruptcy filing.
Red Lobster is closing at least 48 locations across the U.S, according to CNN.
TAGeX Brands’ CEO, Neal Sherman, shared in a LinkedIn post about how the significant number of Red Lobster locations will be closing. His company will handle liquidating restaurant equipment via auctions.
The restaurant closures reportedly span several states. According to Sherman, the auctions are the company’s “largest restaurant liquidation ever,” including furniture, fixtures and equipment.
Customers and long-time fans of the restaurant chain were sad to hear of the closures. One TikTok user, Alexus Hoydic, shared a TikTok video of an empty Red Lobster and wrote about how her specific location closed.
“One of the best memories growing up was my dad taking me to Red Lobster, I used to be obsessed 😭,” one user commented on the post, while another said, “Wait what!! I drove past the local Red Lobster around dinner time and was so confused there was no cars in the parking lot!”
In April, Red Lobster was considering a Chapter 11 bankruptcy filing, sources with knowledge on the matter told Bloomberg at the time.
The sources said that Red Lobster still hasn’t made a final decision when it comes to whether or not to file for bankruptcy, but noted that it would help the business continue to operate while they figure out their next plan, which may include renegotiating some leases and removing some contracts.
This comes amid difficult financial times for the restaurant, as it reported a $12.5 million operating loss in the fourth quarter of 2023, despite raising the price of its endless shrimp promotion, according to CNN. (The company also reported an $11 million loss in the third quarter.)
There have also been some recent internal changes at the company as Red Lobster named Jonathan Tibus as its new CEO in March, according to a report by Orlando Business Journal. He has been known for his expertise in restructuring restaurants on the verge of bankruptcy, according to Nation’s Restaurant News.
