Red Lobster is closing another 23 restaurants. Here’s where they are
Roughly two dozen more Red Lobster locations are scheduled to close within the coming days as part of the seafood restaurant chain’s ongoing bankruptcy proceedings.
Red Lobster, the iconic seafood restaurant chain, is set to close 23 additional locations, bringing the total number of closures to over 100 since the summer. The closures are part of the company's ongoing bankruptcy proceedings.
Red Lobster, once boasting 650 restaurants last year, will now have approximately 500 outlets remaining after the closures. The company is in the process of selling itself to Fortress Credit Corp., a lender with experience in restaurant management. Fortress recently provided Red Lobster with a $100 million loan to help it stay afloat.
Fortress has announced that Damola Adamolekun, the former CEO of P.F. Chang's, will become Red Lobster's new CEO upon the completion of bankruptcy proceedings.
Red Lobster's decline has been attributed to mismanagement, competition, inflation, and other factors. Thai Union, a global seafood supplier, became Red Lobster's leading shareholder in 2020, and the company filed for bankruptcy four years later in May.
Former leaders have stated that under Thai Union's leadership, Red Lobster's culture became toxic. The company cut costs, removed longtime suppliers, and implemented strategies that backfired, such as making $20 endless shrimp a permanent menu item, resulting in an $11 million loss.
The latest closures include locations in Arizona, Arkansas, California, Colorado, Florida, Georgia, Illinois, Indiana, Minnesota, Missouri, New York, North Carolina, Ohio, South Carolina, Virginia, and West Virginia. These closures are expected to continue driving losses and are not necessary for the company's future operations.
Red Lobster, once boasting 650 restaurants last year, will now have approximately 500 outlets remaining after the closures. The company is in the process of selling itself to Fortress Credit Corp., a lender with experience in restaurant management. Fortress recently provided Red Lobster with a $100 million loan to help it stay afloat.
Fortress has announced that Damola Adamolekun, the former CEO of P.F. Chang's, will become Red Lobster's new CEO upon the completion of bankruptcy proceedings.
Red Lobster's decline has been attributed to mismanagement, competition, inflation, and other factors. Thai Union, a global seafood supplier, became Red Lobster's leading shareholder in 2020, and the company filed for bankruptcy four years later in May.
Former leaders have stated that under Thai Union's leadership, Red Lobster's culture became toxic. The company cut costs, removed longtime suppliers, and implemented strategies that backfired, such as making $20 endless shrimp a permanent menu item, resulting in an $11 million loss.
The latest closures include locations in Arizona, Arkansas, California, Colorado, Florida, Georgia, Illinois, Indiana, Minnesota, Missouri, New York, North Carolina, Ohio, South Carolina, Virginia, and West Virginia. These closures are expected to continue driving losses and are not necessary for the company's future operations.