Current:Home > InvestRed Lobster closings: See which locations are shutting down as company files for bankruptcy -Elite Financial Minds
Red Lobster closings: See which locations are shutting down as company files for bankruptcy
Fastexy View
Date:2025-04-09 22:26:39
Red Lobster filed for Chapter 11 bankruptcy in Florida, the company confirmed in a statement late Sunday night.
Last week, Red Lobster's website listed 87 stores listed as "temporarily closed" across 27 states, with some of them having their kitchen equipment up for auction on an online restaurant liquidator.
According to Red Lobster, the company intends to use the bankruptcy proceedings to "drive operational improvements, simplify the business through a reduction in locations, and pursue a sale of substantially all of its assets."
Red Lobster, founded in 1968 and headquartered in Orlando, said in the statement Sunday night it would sell its business to a new entity that will be wholly owned and controlled by its lenders, and that "Red Lobster's restaurants will remain open and operating as usual during the Chapter 11 process." The company has been working with vendors to ensure restaurant operations are unaffected, according to the statement.
"This restructuring is the best path forward for Red Lobster. It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth," said Jonathan Tibus, the company's CEO, in the statement. "The support we've received from our lenders and vendors will help ensure that we can complete the sale process quickly and efficiently while remaining focused on our employees and guests."
Here's what we know about the closures, including where they're happening and why these restaurants are closing.
Red Lobster bankruptcy:Red Lobster files for bankruptcy days after closing dozens of locations across the US
Which Red Lobster locations are closed?
Each of these restaurants are currently listed as temporarily closed on the website:
Alabama
- Decatur
- Huntsville
- Mobile
Arizona
- Oro Valley
California
- Fremont
- Montclair
- Rohnert Park
- Sacramento
- San Diego
- Torrance
Colorado
- Denver
- Lakewood
- Lone Tree
- Wheat Ridge
Florida
- Altamonte Springs
- Daytona Beach Shores
- Gainesville
- Hialeah
- Jacksonville (Commerce Center Drive)
- Jacksonville (Baymeadows Road)
- Jacksonville (City Station Drive)
- Kissimmee
- Largo
- Leesburg
- Orlando (E. Colonial Dr.)
- Orlando (W. Colonial Dr.)
- Orlando (Golden Sky Lane)
- Sanford
- Tampa (East Busch Blvd.)
- Tampa (Palm Pointe Dr.)
Georgia
- Athens
- Dublin
- Roswell
Idaho
- Lewiston
Illinois
- Bloomingdale
- Danville
Indiana
- Elkhart
- Indianapolis (N. Shadeland Ave.)
Iowa
- Waterloo
Kansas
- Kansas City
- Olathe
Louisiana
- Bossier City
Maryland
- Columbia
- Gaithersburg
- Laurel
- Silver Spring
Mississippi
- Jackson
Missouri
- Jefferson City
New Jersey
- Bridgewater
- East Brunswick
- Ledgewood
- Lawrenceville
New York
- Amherst
- Buffalo
- Kingston
- Lakewood
- Nanuet
- Rochester
- Poughkeepsie
- Scarsdale
- Stony Brook
- Williamsville
North Carolina
- Burlington
- Cary
- Durham
- Rocky Mount
North Dakota
- Grand Forks
Oklahoma
- Lawton
- Oklahoma City
- Stillwater
Pennsylvania
- Erie
South Carolina
- Myrtle Beach
Tennessee
- Memphis
Texas
- Dallas (E. Technology Blvd.)
- Dallas (Vantage Point Dr.)
- Houston
- Lake Jackson
- Longview
- Lufkin
- Pasadena
- Tyler
Virginia
- Colonial Heights
- Newport News
- Williamsburg
Washington
- Silverdale
Wisconsin
- La Crosse
- Wauwatosa
Who own Red Lobster restaurants?
Thai Union Group − which is based in Thailand − has been the largest shareholder since 2020, owning 49% of the company. Darden Restaurants originally sold off Red Lobster to private equity firm Golden Gate Capital in 2014 for about $2.1 billion.
Red Lobster suffered big losses with 'Ultimate Endless Shrimp' promotion
In 2023, the seafood chain's "Ultimate Endless Shrimp" deal became more popular than expected, inadvertently becoming a key factor in a $11 million loss in the third quarter.
The limited-time promotional deal, in which guests picked two types of shrimp to enjoy nonstop for $20, landed a permanent spot on Red Lobster menus in June. Red Lobster's parent company, Thai Union Group, said in November 2023 that the chain was headed toward a $20 million loss for 2023. Now the endless shrimp deal costs $25.
Thai Union Group CFO Ludovic Regis Henri Garnier said in an earnings report call that the company was aware the initial price for the endless-shrimp deal was cheap. The offer was intended to draw customers into restaurants, but orders exceeded expectations, he said.
"We wanted to boost our traffic, and it didn't work," Garnier told investors in November 2023, according to Restaurant Business Magazine. "We want to keep it on the menu. And of course we need to be much more careful regarding what are the entry points and what is the price point we are offering for this promotion."
Contributing: Anthony Robledo, USA TODAY
Gabe Hauari is a national trending news reporter at USA TODAY. You can follow him on X @GabeHauari or email him at [email protected].
veryGood! (5)
Related
- Paris Hilton, Nicole Richie return for an 'Encore,' reminisce about 'The Simple Life'
- AP Election Brief | What to expect in Utah’s special congressional primary
- Most states have yet to permanently fund 988 Lifeline despite early successes
- 'Extremely dangerous' man escapes Pa. prison after getting life for murdering ex-girlfriend
- Skins Game to make return to Thanksgiving week with a modern look
- Horoscopes Today, August 31, 2023
- Can Ozempic, Wegovy reduce alcohol, nicotine and other cravings? Doctor weighs in on what to know.
- Regé-Jean Page and Girlfriend Emily Brown Make Rare Public Outing at 2023 Venice Film Festival
- The Super Bowl could end in a 'three
- Your Labor Day weekend travel forecast
Ranking
- Who's hosting 'Saturday Night Live' tonight? Musical guest, how to watch Dec. 14 episode
- New York City is embracing teletherapy for teens. It may not be the best approach
- Rifle slaying of a brown bear in Italy leaves 2 cubs motherless and is decried by locals, minister
- Love Is Blind’s Marshall Debuts Girlfriend of One Year on After the Altar
- What were Tom Selleck's juicy final 'Blue Bloods' words in Reagan family
- Cities are embracing teen curfews, though they might not curb crime
- Love Is Blind: After the Altar Season 4 Status Check: See Which Couples Are Still Together
- Smugglers are steering migrants into the remote Arizona desert, posing new Border Patrol challenges
Recommendation
The Best Stocking Stuffers Under $25
ESPN goes dark for Spectrum cable subscribers amid Disney-Charter Communications dispute
Smugglers are steering migrants into the remote Arizona desert, posing new Border Patrol challenges
Parents honor late son by promoting improved football safety equipment
From family road trips to travel woes: Americans are navigating skyrocketing holiday costs
Understaffed nursing homes are a huge problem, and Biden's promised fix 'sabotaged'
New York City is embracing teletherapy for teens. It may not be the best approach
Order Panda Express delivery recently? New lawsuit settlement may entitle you to some cash