Red Lobster Closing Almost 50 Locations Says Report
American seafood restaurant chain Red Lobster has recently faced closures of nearly 50 locations across the country, according to a liquidation company. On LinkedIn, CEO and Founder of TAGeX Brands, Neal Sherman, announced that his company would be hosting an online auction for the closure of these restaurants. The auction is said to result in “the largest restaurant liquidation” with 48 Red Lobster locations being shut down. While Red Lobster has over 700 locations across the country, these closures raise questions about the financial status of the seafood chain.
The closure of Red Lobster locations in Jacksonville, Florida, Watertown, New York, and Bloomingdale and Danville, Illinois, has been confirmed by the liquidation company, TAGeX Brands. The closures raise concerns about the future of the seafood chain, which has been in business for over 50 years. Red Lobster has always been a popular choice among Americans, and the closure of these locations may come as a surprise to many loyal customers.
CEO and Founder of TAGeX Brands, Neal Sherman, announced the closures of the Red Lobster locations on LinkedIn, stating that their liquidation company had been chosen to handle the sale of furniture, fixtures, and equipment from these restaurants. He also mentioned that the auction would have a single winner for each location, emphasizing the urgency with the phrase “MUST GO ASAP!” The liquidation company is known for handling closures of restaurants and retailers, but the announcement of such a large number of closures raises questions about the state of the seafood chain.
Red Lobster has been facing financial troubles recently, with reports of a possible bankruptcy filing being considered. This news comes after a promotion for all-you-can-eat shrimp led to a loss of $11 million in 2023. Red Lobster CFO Ludovic Garnier addressed this issue in a statement, saying that the promotion was meant to lure more customers with its low price but resulted in a loss for the company. This setback may have played a role in the decision to close these locations.
In 2020, ThaiUnion, a Thailand-based company that produces seafood products, purchased a stake in Red Lobster. However, in January 2024, ThaiUnion announced that it would be exiting from its investment in the seafood chain. The company also stated that it would be taking a loss of approximately $530 million as a result of its investment. This news adds weight to the financial struggles faced by Red Lobster, as it may have affected their ability to keep these locations open.
The closures of nearly 50 Red Lobster locations raise concerns not only for the customers but also for the employees who may have lost their jobs. Many loyal customers have expressed their disappointment and support for the employees on social media. However, this sudden and significant number of closures may have been necessary for the company’s survival. Red Lobster has yet to issue an official statement on the closures and the future of the remaining locations.
Breitbart News reached out to Red Lobster for a statement but did not receive a response by the time of publication. This lack of response from the company may add to the speculation and concern surrounding the closures. Customers and employees alike are eagerly awaiting a statement from Red Lobster to shed some light on the situation and provide reassurance for the future of the seafood chain.
In the meantime, customers can only speculate about the possible reasons behind these closures. Some suggest that it could be due to poor management decisions, while others believe that the rise of online food ordering and delivery services has affected the chain’s sales. Regardless of the reason, the closure of these locations is a significant loss for the company and its customers. Many loyal customers have expressed their hope that Red Lobster can overcome this setback and continue to serve their seafood dishes for years to come.