Current:Home > ContactRed Lobster closings: See which locations are shutting down as company files for bankruptcy -ProfitPioneers Hub
Red Lobster closings: See which locations are shutting down as company files for bankruptcy
View
Date:2025-04-18 17:30:41
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! (3774)
Related
- 2 killed, 3 injured in shooting at makeshift club in Houston
- What’s EMTALA, the patient protection law at the center of Supreme Court abortion arguments?
- 10 bookstores that inspire and unite in celebration of Independent Bookstore Day
- Need a poem? How one man cranks out verse − on a typewriter − in a Philadelphia park
- Pressure on a veteran and senator shows what’s next for those who oppose Trump
- New Mexico reaches settlement in 2017 wage-theft complaint after prolonged legal battle
- Julia Fox and More Stars Defend Taylor Swift Against Piece About Fan Fatigue
- Ex-police officer pleads guilty to punching man in custody about 13 times
- Meet the volunteers risking their lives to deliver Christmas gifts to children in Haiti
- Bryan Kohberger's lawyers can resume phone surveys of jury pool in case of 4 University of Idaho student deaths, judge rules
Ranking
- Grammy nominee Teddy Swims on love, growth and embracing change
- 11 inmates face charges related to an uprising at South Dakota prison
- Pro-Palestinian protests leave American college campuses on edge
- Abortion returns to the spotlight in Italy 46 years after it was legalized
- Trump suggestion that Egypt, Jordan absorb Palestinians from Gaza draws rejections, confusion
- Korean War veteran from Minnesota will finally get his Purple Heart medal, 73 years late
- Richmond Mayor Stoney drops Virginia governor bid, he will run for lieutenant governor instead
- Proof Pregnant Vanessa Hudgens Won’t Be Sticking to Status Quo After Welcoming Baby
Recommendation
Senate begins final push to expand Social Security benefits for millions of people
Minnesota Sen. Nicole Mitchell arrested on suspicion of burglary after being found in home
Crew members injured in crash on Georgia set of Eddie Murphy Amazon MGM movie ‘The Pickup’
NFL draft has been on tour for a decade and the next stop is Detroit, giving it a shot in spotlight
Charges tied to China weigh on GM in Q4, but profit and revenue top expectations
Remains believed to be missing woman, daughter found at West Virginia home on same day suspect died
Umpire Hunter Wendelstedt won't apologize for ejecting Yankees' Aaron Boone: He 'had to go'
Texas deputy dies after being hit by truck while helping during accident