News Red Lobster closing at least 99 locations as its future comes into question

[The Helper]

Earlier this year, Thai Union, the largest investor in the largest seafood restaurant chain in the country, announced it was seeking to sell its stake.

At least 99 locations of Red Lobster are being auctioned off amid questions about the stalwart seafood chain's long-term future.

In a post Monday on LinkedIn, Neal Sherman, founder and CEO of TAGeX Brands, a liquidation firm, announced he was leading the closure of more than 50 Red Lobster locations, with the restaurants' equipment to be auctioned off.

A web page dedicated to the liquidations showed closure locations across the U.S. including in Denver; Indianapolis; Rochester, New York; Sacramento, California; San Antonio; and San Diego.

On Tuesday, Restaurant Business Magazine reported 99 locations were closing.

Red Lobster closing at least 99 locations as its future comes into question

Earlier this year, Thai Union, the largest investor in the largest seafood restaurant chain in the country, announced it was seeking to sell its stake.

www.nbcnews.com

 

[tom_mai78101]

Red Lobster files for bankruptcy

New York CNN — Red Lobster, which brought affordable shrimp and lobster to middle-class America and grew to become the largest seafood restaurant chain in the world, has filed for bankruptcy.

The company said it had more than $1 billion in debt and less than $30 million in cash on hand. It plans to sell its business to its lenders, and in turn, it will receive financing to stay afloat. It expects to continue to close restaurants in the meantime.

Red Lobster, known for its cheddar bay biscuits, crab legs and shrimp dishes, spread around the country during the 1980s and 1990s. In 2016, Beyoncé mentioned Red Lobster in her song “Formation,” describing bringing a romantic partner to Red Lobster, causing sales to surge.

With 578 restaurants across 44 states and Canada, Red Lobster serves 64 million customers a year, and it brings in $2 billion in annual sales, the company said in its bankruptcy filing. One in five lobster tails purchased in North America is bought by Red Lobster.

But recent mismanagement, competition, inflation and other factors brought down Red Lobster, analysts and former Red Lobster employees say.

Years of underinvestment in Red Lobster’s marketing, food quality, service and restaurant upgrades hurt the chain’s ability to compete with growing fast-casual and quick-service chains.

https://www.cnn.com/2024/05/20/investing/red-lobster-restaurants-bankruptcy/index.html

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It finally happened.

 

[The Helper]

That sucks! I love Red Lobster, even though I very rarely go. There is just not one close to me, really. I do have fond memories of the place from my childhood. The Red Lobster was one of the places my family ate out at and I think the only seafood place besides Long John Silvers I remember from my childhood.

 

[The Helper]

Red Lobster lists 99 restaurants closed in 28 states: See locations closing in your state

Dozens of Red Lobster restaurants have abruptly closed across the country and the company filed for Chapter 11 bankruptcy in Florida on Sunday.

As of Wednesday morning, the company's website lists 99 locations closed across 28 states, with some of them having their kitchen equipment auctioned off on an online restaurant liquidator last week. That is an additional 12 locations than previously reported by USA TODAY.

The liquidator, TAGeX Brands, announced last week it was auctioning off equipment from 48 locations that have closed. The website said that each winner would receive the "entire contents of the Red Lobster location they bid on."

The company's bankruptcy filing in the Middle District of Florida details how Red Lobster has struggled in various ways, including a 30% drop in guests since 2019. In a 124-page document obtained by USA TODAY on Tuesday, Red Lobster CEO Jonathan Tibus explains why the seafood restaurant chain filed for bankruptcy on Sunday and why he supports the decision.

Red Lobster lists 99 restaurants closed in 28 states: See locations closing in your state

Red Lobster's website lists 99 restaurant locations as closed. Here's a full list, including a state-by-state breakdown, of closed locations.

www.usatoday.com