Popular Restaurant Closing 48 Locations

(TheIndependentStar.com) – Popular Red Lobster restaurant is reportedly closing at least 48 of its locations, and a restaurant supply liquidator is auctioning off kitchen equipment from the affected eateries this week.

TAGeX Brands announced that it is conducting an online auction for certain Red Lobster restaurants that are shut down in various states.

California and Florida are each losing five locations, while Maryland and Colorado are losing four.

Nexstar’s KETK also reported that three Red Lobster restaurants in Texas abruptly shut down this week, which listed their hours as “closed,” and none of these locations could be reached by phone.

The mayor of Danville, Illinois, posted a message on Facebook about the sudden closure of the city’s only Red Lobster and offered his prayers to the affected workers.

“I was just notified by one of our local Red Lobster managers that after 31 years of serving our community, without notice, their parent company laid off the entire crew and closed the restaurant effective immediately.”

“This is despite the fact that they were rated number 15 out of over 600 stores for customer service & satisfaction last year,” he added.

Moreover, TAGeX Brands called it “the largest restaurant equipment auction ever” on its website. While the items are not being sold individually, each location will have one winning bidder who will take all contents from the restaurant.

“These auctions are WINNER TAKES ALL – meaning, each winner will receive the ENTIRE contents of the Red Lobster location they bid on,” TAGeX Brands noted.

Back in April, Bloomberg and CNBC reported that the seafood chain, a staple of the American restaurant scene for decades, was considering filing for bankruptcy.

The report noted that sources familiar with the matter said the food chain restaurant was seeking restructuring advice to address leases and labor costs.

Furthermore, the company has faced financial and internal challenges over the past few years.

Between 2021 and 2022, CNN reported that the company welcomed a new lineup of executives, including a new CEO, chief marketing officer, chief financial officer, and chief information officer. All of them reportedly left within two years.

Then, there was the endless shrimp fiasco. In June 2023, the company added its “Ultimate Endless Shrimp”—typically a limited offer—to its regular menu for $20. The attempt to draw in more customers worked but came at a cost.

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