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  • The US Sun

    Red Lobster confirms eight more restaurants on the chopping block after filing for bankruptcy and 99 shutters

    By Maya Lanzone,

    2024-06-14

    RED Lobster filed for bankruptcy last month and a wave of financial troubles has forced the chain to shutter several locations.

    The beloved seafood chain has already closed dozens of locations and confirmed eight more restaurants at risk.

    https://img.particlenews.com/image.php?url=4X7Trf_0trfX0ZY00
    Seafood chain Red Lobster has plans to reject leases for eight locations in a single state Credit: Getty

    Red Lobster announced on May 19 that it filed for Chapter 11 bankruptcy due to its billions in debt and less than $30 million in cash.

    The seafood chain began closing several locations the week before the filing and has since shuttered 99 restaurants in 28 states, per USA Today.

    Eight more restaurants are confirmed to be on the chopping block.

    According to court documents, Red Lobster has plans to reject the leases for the following Ohio locations:

    • 3655 Orange Place, Beachwood
    • 6500 Miller Lane, Dayton
    • 2340 Tiffin Avenue, Findlay
    • 1422 Reynolds Road, Maumee
    • 255 Graff Road SE, New Philadelphia
    • 7607 Day Drive, Parma
    • 17227 South Park Center, Strongsville
    • 4990 Monroe Street, Toledo

    The Red Lobster at 1691 Dublin-Granville Road in Columbus was already shut down several months ago.

    The building is now adorned with graffiti and code violation notices near the front door, per local NBC affiliate WCMH-TV.

    31 other Ohio Red Lobsters remain open according to the restaurant's website.

    FINANCIAL TROUBLES

    Founded in 1968 in Lakeland, Florida, Red Lobster operates over 540 restaurants in the US.

    The seafood chain has had periods of financial challenges over the years and has struggled with several underperforming restaurants.

    Red Lobster has spent $190.5 million so far in 2024 to operate all its locations, with $64 million of the money going towards “underperforming locations,” per the court filing.

    Additionally, the restaurant noted its yearly customer count has dropped 30% since 2019.

    Over the past year, the chain experienced a significant decrease in net sales, with a reported loss of $76 million in 2023.

    A major factor was Red Lobster's “endless shrimp” promotion last year, through which customers could pay $20 for unlimited shrimp.

    Red Lobster

    https://img.particlenews.com/image.php?url=0SW4yX_0trfX0ZY00

    Red Lobster was founded in 1968 by entrepreneurs Bill Darden and Charley Woodsby in Lakeland, Florida.

    It is a casual dining seafood restaurant chain known for dishes such as shrimp, lobster, and crab.

    The restaurant has a nautical-theme atmosphere and is popular for its Cheddar Bay Biscuits.

    It is a well-known chain with hundreds of restaurants across the US and internationally.

    It was intended to be a limited-time offer, and the decision to permanently add it to the menu cost the chain $11 million.

    Given its financial difficulties, Red Lobster CEO Jonathan Tibus said, “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.”

    The restructuring plans include debt reorganization, potential asset sales, and of course, several restaurant closures.

    In related news, a beloved grocer with 700 stores closes a location after 70 years.

    Plus, Walmart confirms permanent closures in less than a month.

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