Securities filings, official company press releases, or major financial news outlets

Red Lobster Closes 48 Locations Amid Financial Woes, Prepares for Bankruptcy

May 14, 2024, 04:18 PM

Red Lobster has abruptly closed dozens of its restaurant locations across the United States due to financial difficulties and is preparing to file for bankruptcy as early as next week. The closures, which include at least 48 locations, have impacted around 6,500 employees and have led to the auctioning off of kitchen equipment and furniture from the shuttered outlets, with auctions starting on May 16th. The company's financial troubles have been exacerbated by a $20 'endless shrimp' promotion that contributed to an $11 million loss in the third quarter. Red Lobster's website lists 87 locations as 'temporarily closed' across 27 states, including significant closures in New York, New Jersey, Texas, and Florida, with 14 locations in New York and New Jersey.