Current:Home > InvestRed Lobster closings: See which locations are shutting down as company files for bankruptcy -BeyondWealth Learning
Red Lobster closings: See which locations are shutting down as company files for bankruptcy
View
Date:2025-04-14 13:25:48
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! (9)
Related
- Juan Soto praise of Mets' future a tough sight for Yankees, but World Series goal remains
- Wisconsin Supreme Court agrees to hear governor’s lawsuit against GOP-controlled Legislature
- 'Wait Wait' for February 3, 2024: Live from Milwaukee with Kristen Kish!
- The Daily Money: Cybercriminals at your door?
- 'Kraven the Hunter' spoilers! Let's dig into that twisty ending, supervillain reveal
- Alyssa Milano Shares Hurtful Messages Her Son Received After She Posted His Baseball Team's Fundraiser
- Gary Bettman calls Canada 2018 junior hockey team sexual assault allegations 'abhorrent'
- Tennessee plans only one year of extra federal summer food aid program for kids
- Macy's says employee who allegedly hid $150 million in expenses had no major 'impact'
- Sam Waterston to step down on 'Law & Order' as District Attorney Jack McCoy
Ranking
- EU countries double down on a halt to Syrian asylum claims but will not yet send people back
- Joe Rogan signs new multiyear Spotify deal that allows him to stream on other services
- Justin Bieber Returns To The Stage A Year After Canceling World Tour
- Subway footlong cookies: Loved so much by customers that chain can't keep up with demand
- Arkansas State Police probe death of woman found after officer
- Supreme Court allows West Point to continue using race as a factor in admissions, for now
- Target pulls Black History Month book that misidentified 3 civil rights icons
- Subway footlong cookies: Loved so much by customers that chain can't keep up with demand
Recommendation
The Louvre will be renovated and the 'Mona Lisa' will have her own room
'Compassionate soul': 16-year-old fatally shot while 'play fighting' with other teen, police say
New Mexico Democrats push to criminalize fake electors before presidential vote
Corbin Burnes trade grades: Orioles strike gold by acquiring Cy Young winner
Nearly 400 USAID contract employees laid off in wake of Trump's 'stop work' order
Shop Amazon’s Epic Baby Sale & Stock Up on Highly-Rated Essentials from Medela, Dr. Brown's & More
Olivia Culpo Reacts After Christian McCaffrey's Mom Says They Can't Afford Super Bowl Suite
Cher and Boyfriend Alexander Edwards Enjoy Date Night at Pre-Grammys Party After Rekindling Romance