Red Lobster, a seafood restaurant chain that has been struggling financially in recent years, has announced the closure of over 50 locations across the US. The company has not publicly commented on the closures, but recent reports suggest that they may be considering bankruptcy.
TAGeX Brands, a restaurant liquidator, will be auctioning off kitchen items and furniture from these closed locations. The auction is set to run from Monday to Thursday, with four sales already completed on Monday. TAGeX Brands stated that this would be the largest restaurant equipment auction event ever, covering over 50 former Red Lobster locations across the country.
The closures affect several states including California, Colorado, Florida, New York, and Texas. While Red Lobster has over 700 locations in total, it is uncertain whether this figure includes the recently closed locations. The company’s website lists some of the affected locations as temporarily closed for the rest of the week.
Recent financial struggles have plagued Red Lobster, with losses of $11 million in the third quarter of 2023 attributed to an all-you-can-eat shrimp promotion. The onset of COVID-19 pandemic in March 2020 also resulted in significant sales losses. Reports in April suggested that the restaurant company was contemplating a Chapter 11 bankruptcy filing. Golden Gate Capital, the private equity firm that acquired Red Lobster in 2014, has been identified by retail experts as a contributing factor to the company’s difficulties. The firm sold Red Lobster’s real estate holdings to finance its acquisition and leasing costs have had an impact on brand. Additionally, multiple executives have left Red Lobster in recent years which has added to its challenges.
TAGeX Brands will continue selling items from other Red Lobster properties until further notice.
