Financial statements, SEC filings

Red Lobster Abruptly Closes Over 50 Locations Amid Bankruptcy Rumors

May 14, 2024, 01:45 PM

Red Lobster has abruptly closed dozens of its restaurants across the United States, citing financial difficulties. The closures, which affect more than 50 locations, come as the company faces rumors of a potential bankruptcy filing. The chain's 'endless shrimp' promotion, launched last summer, contributed to an $11 million loss in the third quarter. As a result, the company has started auctioning off kitchen equipment and furniture from the shuttered locations, with auctions beginning on May 16th. The closures have impacted around 6,500 employees and have left many blindsided by the sudden shutdowns. Red Lobster's website lists 87 locations as 'temporarily closed' in 27 states. Among the closures are 14 locations in New York and New Jersey. Reports indicate the company is facing cash issues and has shuttered up to 80 restaurants.