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Red Lobster Abruptly Closes 48-80 Restaurants, Affecting 6,500 Employees Amid Financial Troubles

May 14, 2024, 01:42 AM

Red Lobster has abruptly closed at least 48 of its restaurants across the United States, affecting approximately 6,500 employees. The closures, which span at least 27 states, come amid financial difficulties and rumors of a potential Chapter 11 bankruptcy filing. The company has also begun auctioning off kitchen equipment from the shuttered locations, with a significant auction scheduled for May 16th. The sudden closures have blindsided employees and customers alike, with some locations listed as 'temporarily closed' on the restaurant's website. The closures follow a series of financial challenges, including a notable $11 million loss in the third quarter, partly attributed to a popular $20 'endless shrimp' promotion. Reports indicate that up to 80 restaurants may be affected, including 14 in New York and New Jersey.