Red Lobster Announces Nearly 100 Locations Will Be Shut Down

Video Credit: Wibbitz Top Stories
Published on May 14, 2024 - Duration: 01:31s

Red Lobster Announces Nearly 100 Locations Will Be Shut Down

Red Lobster Announces, Nearly 100 Locations , Will Be Shut Down.

NBC reports that approximately 99 Red Lobster locations will be auctioned off as the seafood chain faces questions regarding the company's long-term future.

Founder and CEO of the liquidation firm TAGeX Brands, Neal Sherman, said he would lead the closure of over 50 locations in a May 13 LinkedIn post.

Sherman said equipment from the locations will be auctioned off.

Locations will reportedly be closed across the United States, including Denver, Indianapolis, California and New York.

On May 14, Restaurant Business Magazine reported a total of 99 locations would close, representing about 15% of the company's 700 locations.

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NBC reports that the largest seafood restaurant in the U.S. has struggled with debt, unfavorable leases and executive turnover.

The chain's troubles also stem from ill-advised strategies like an all-you-can-eat-shrimp promotion in 2023 that resulted in a significant loss.

Earlier in 2024, the chain's largest investor, Thai Union, announced that it would seek to exit its position.

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The combination of Covid-19 pandemic, sustained industry headwinds, higher interest rates and rising material and labor costs have impacted Red Lobster, resulting in prolonged negative financial contributions to Thai Union and its shareholders, Thiraphong Chansiri, Thai Union Groupโ€™s CEO, via NBC.

After detailed analysis, we have determined that Red Lobsterโ€™s ongoing financial requirements no longer align with our capital allocation priorities and therefore are pursuing an exit of our minority investment, Thiraphong Chansiri, Thai Union Groupโ€™s CEO, via NBC


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