From coast to coast, Red Lobster has shuttered dozens of its seafood restaurants, culminating in a significant announcement of the chain’s Chapter 11 bankruptcy filing in Florida. These closures, affecting 28 states, have left loyal patrons concerned about the future of their cherished dining spots.
Red Lobster’s website now lists 99 stores as “temporarily closed,” though some may face permanent closure, as evidenced by kitchen equipment being auctioned on a restaurant liquidator’s site. These closures are part of a broader strategy as Red Lobster undergoes financial restructuring.
Founded in 1968, Red Lobster is the largest seafood chain in the U.S., with 551 stores across 44 states. According to the company’s court filing, they have over 700 locations worldwide. Amid the current challenges, Red Lobster plans 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.”
In a statement released Sunday night, Red Lobster confirmed it would sell its business to a new company owned and controlled by its lenders. Despite the financial reorganization, the chain assured that its restaurants would remain open throughout the Chapter 11 process.
For many loyal customers, the closures have come as a shock. The pressing question is whether their favorite seafood chain will “sleep with the fishes” or emerge stronger from this financial overhaul.