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Red Lobster files for bankruptcy; Illinois Restaurants Closing – NBC Chicago

Red Lobster filed for Chapter 11 bankruptcy protection days after closing nearly 50 restaurants in more than 20 states, including Illinois.

The seafood chain has faced rising rental and labor costs in recent years, as well as promotions such as its iconic all-you-can-eat shrimp deal backfiring.

Demand for such a recent promotion has overwhelmed restaurants, apparently contributing to millions in losses.

The seafood restaurant chain said in a court filing late Sunday that it had more than 100,000 creditors and its assets were estimated at between $1 billion and $10 billion. The company’s estimated liabilities are between $1 billion and $10 billion.

The bankruptcy petition is signed by CEO Jonathan Tibus, a corporate restructuring specialist who took the helm of Red Lobster in March.

Restaurant liquidator TAGeX Brands announced last week that it would auction equipment from more than 50 recently shuttered Red Lobster locations. The store closures span more than 20 states, reducing Red Lobster’s presence in cities like Denver, San Antonio, Indianapolis and Sacramento, California.

Maintaining the stability of the Floriday chain has been problematic due to multiple ownership changes during its 56-year history. Earlier this year, Thai Union Group, co-owner of Red Lobster, one of the world’s largest seafood suppliers, announced plans to exit its minority investment in the restaurant chain.

Thai Union first invested in Red Lobster in 2016 and increased its stake in 2020. At the time of its January announcement of its divestment plans, CEO Thiraphong Chansiri said that the COVID-19 pandemic, Industry headwinds and rising operating costs had hit the restaurant chain. difficult and caused “prolonged negative financial contributions to Thai Union and its shareholders”.

For the first nine months of 2023, the Thai company reported a loss share of $19 million from Red Lobster.

Red Lobster’s roots date back to 1968, when the first restaurant opened in Lakeland, Florida. Since then, the chain has grown rapidly to over 700 locations worldwide.

Which Red Lobster stores are closing?

Red Lobster announces the closure of nearly 50 of its restaurants in the United States. Here is a look at the most recent list of establishments that will close.

Alabama

Auburn

Decatur

California

Redding

Rohnert Park

Sacramento

San Diego

Torrance

Colorado

Denver

Lake Wood

Lonely tree

Wheat Ridge

Florida

Altamonte Springs

Gainesville

Hialeah

Largo

Orlando

Georgia

Athens

Roswell

Dublin

Idaho

Lewiston

Illinois

Bloomingdale

Danville

Indiana

Indianapolis

Elkhart

Iowa

Council Bluffs

Waterloo

Maryland

Gaithersburg

Colombia

Silver Spring

Laurel

Michigan

Strong

Gratiot

Mississippi

D’lberville

new York

Amherst

Kingston

Rochester

New Jersey

Edge wood

North Dakota

Large Forks

Oklahoma

Lawton

Caroline from the south

Myrtle Beach

Texas

Jackson Lake

Long-term vision

San Antonio

Virginia

Colonial Heights

Williamsburg

Newport News

Washington

Silverdale

Wisconsin

Wauwatosa

The Crosse

NBC Chicago

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