Red Lobster abruptly closed dozens of restaurants across the United States.
The restaurant chain’s website shows that 87 locations in 27 states have temporarily closed, and kitchen equipment from some locations is being auctioned off to an online restaurant liquidator.
Liquidator TAGeX Brands announced Monday that equipment from 48 closed stores will be auctioned off this week. The auction is currently ongoing and ends regularly on Thursday, and each winner will receive “the entire contents of the Red Lobster store for which they bid,” according to the website.
USA TODAY reached out to Red Lobster on Tuesday but did not receive a response prior to publication.
Here’s what we know about the closings, including where they’re happening and why these restaurants are closing.
Red Lobster Closing:Red Lobster abruptly closes dozens of restaurants across the U.S., preparing for liquidation
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Red Lobster stores closed
Each restaurant listed below is currently listed as temporarily closed on our website.
alabama state
arizona
California
colorado
florida
georgia
idaho
illinois
Indiana
iowa
Kansas
louisiana
maryland
mississippi
missouri
new jersey
new york
north carolina
north dakota
oklahoma
pennsylvania
south carolina
tennessee
texas
Virginia
Washington
wisconsin
Red Lobster considers filing for bankruptcy in April
According to Bloomberg, the company considered filing for Chapter 11 bankruptcy last month to restructure its debt.
Bloomberg notes that Red Lobster’s cash flow is being squeezed by issues such as leases and labor costs, and that the company is terminating some long-term contracts and considering renegotiating leases, leading to legal work. The company reportedly received advice from Tokoro King & Spalding.
Red Lobster suffered huge losses with its ‘Ultimate Endless Shrimp’ promotion
In 2023, the seafood chain’s “Ultimate Endless Shrimp” deal became more popular than expected and was inadvertently a key factor in the company’s $11 million loss in the third quarter.
A limited-time promotional deal that allows guests to choose two types of shrimp and enjoy them nonstop for $20 became permanent on Red Lobster’s menu in June. Red Lobster’s parent company, Thai Union Group, announced in November 2023 that the chain was headed for a $20 million loss in 2023. Currently, the cost of infinite shrimp trading is $25.
Thai Union Group Chief Financial Officer Ludovic Régis-Henri Garnier said on an earnings call that the company was aware that the initial price of the Endless Shrimp contract was low. The offer was intended to draw customers to the restaurant, but orders exceeded expectations.
“We wanted to increase foot traffic, but it didn’t work out,” Garnier told investors in November 2023, according to Restaurant Business Magazine. “We want to keep that on the menu, and of course we need to be more selective about the entry points and prices we offer in this promotion.”
Chris Sims is a digital content producer at Midwest Connect Gannett. Follow him on Twitter: @ChrisFims.
Gabe Hauari is USA TODAY’s national trends news reporter. You can follow him at X @gabehauari Or email Gdhauari@gannett.com.
