Current:Home > ScamsRed Lobster closings: See which locations are shutting down as company files for bankruptcy -Infinite Edge Capital
Red Lobster closings: See which locations are shutting down as company files for bankruptcy
View
Date:2025-04-16 04:56:56
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 Gdhauari@gannett.com.
veryGood! (5286)
Related
- Jorge Ramos reveals his final day with 'Noticiero Univision': 'It's been quite a ride'
- Toyota to Spend $35 Billion on Electric Push in an Effort to Take on Tesla
- Robert De Niro Mourns Beloved Grandson Leandro De Niro Rodriguez's Death at 19
- Why Sarah Jessica Parker Was Upset Over Kim Cattrall's AJLT Cameo News Leak
- Current, future North Carolina governor’s challenge of power
- Shop These American-Made Brands This 4th of July Weekend from KitchenAid to Glossier
- Elon Musk says 'I've hired a new CEO' for Twitter
- Study Identifies Outdoor Air Pollution as the ‘Largest Existential Threat to Human and Planetary Health’
- Why Sean "Diddy" Combs Is Being Given a Laptop in Jail Amid Witness Intimidation Fears
- Light a Sparkler for These Stars Who Got Married on the 4th of July
Ranking
- Senate begins final push to expand Social Security benefits for millions of people
- He's trying to fix the IRS and has $80 billion to play with. This is his plan
- Indian Court Rules That Nature Has Legal Status on Par With Humans—and That Humans Are Required to Protect It
- Dream Kardashian, Stormi Webster and More Kardashian-Jenner Kids Have a Barbie Girls' Day Out
- What to watch: O Jolie night
- Our final thoughts on the influencer industry
- Housing dilemma in resort towns
- Space Tourism Poses a Significant ‘Risk to the Climate’
Recommendation
South Korea's acting president moves to reassure allies, calm markets after Yoon impeachment
President Biden: Climate champion or fossil fuel friend?
Financier buys Jeffrey Epstein's private islands, with plans to create a resort
25 Cooling Products for People Who Are Always Hot
Federal appeals court upholds $14.25 million fine against Exxon for pollution in Texas
Fifty Years After the UN’s Stockholm Environment Conference, Leaders Struggle to Realize its Vision of ‘a Healthy Planet’
SpaceX wants this supersized rocket to fly. But will investors send it to the Moon?
How businesses are using designated areas to help lactating mothers