Red Lobster abruptly closed dozens of restaurants across the country.
A look at the restaurant chain’s website reveals that 87 stores have been temporarily closed in 27 states, with some of them putting their kitchen equipment up for auction on an online restaurant liquidator.
The liquidator, TAGeX Brands, announced Monday that it would auction off equipment from 48 shuttered sites this week. The website says the auction is live and will end periodically on Thursday, and that each winner will receive “the entire contents of the Red Lobster location they bid on.”
USA TODAY contacted Red Lobster on Tuesday and did not receive a response prior to publication.
Here’s what we know about the closures, including where they’re happening and why these restaurants are closing.
Red Lobster Closures: Red Lobster abruptly closes dozens of restaurants in the United States, preparing to liquidate them
Red Lobster locations closed
Each of these restaurants is currently listed as temporarily closed on the website:
Alabama
Arizona
California
Colorado
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Louisiana
Maryland
Mississippi
Missouri
New Jersey
new York
North Carolina
North Dakota
Oklahoma
Pennsylvania
Caroline from the south
Tennessee
Texas
Virginia
Washington
Wisconsin
Red Lobster plans to file for bankruptcy in April
The seafood chain considered filing for bankruptcy last month in an effort to restructure its debt, according to Bloomberg.
The company received advice from law firm King & Spalding as it sought to abandon some long-term contracts and renegotiate leases, Bloomberg reported, noting that Red Lobster’s cash flow had been weighed down by leases and labor costs, among other issues.
Red Lobster suffered big losses with the “Ultimate Endless Shrimp” promotion
In 2023, the seafood chain’s “Ultimate Endless Shrimp” deal became more popular than expected, inadvertently becoming a key factor in an $11 million third-quarter loss.
The limited-time promotional offer, in which guests chose two types of shrimp to enjoy nonstop for $20, landed a permanent spot on Red Lobster’s menus in June. Red Lobster’s parent company, Thai Union Group, said in November 2023 that the chain was headed for a $20 million loss for 2023. Now the never-ending shrimp deal costs $25.
Thai Union Group Chief Financial Officer Ludovic Régis Henri Garnier said in an earnings call that the company was aware that the initial price of the endless shrimp deal was cheap. The offer was intended to attract customers to restaurants, but orders exceeded expectations, he said.
“We wanted to increase our traffic, and it didn’t work,” Garnier told investors in November 2023, according to Restaurant Business Magazine. “We want to keep it on the menu. And of course, we have to be much more careful about the entry points and the price that we offer for this promotion.”
Chris Sims is a digital content producer at Midwest Connect Gannett. Follow him on Twitter: @ChrisFSims.
Gabe Hauari is a national news reporter at USA TODAY. You can follow him on @GabeHauari or email him at Gdhauari@gannett.com.
This article originally appeared on USA TODAY: Red Lobster Closures: See Full List of Closed Restaurants
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