Red Lobster, once a beloved name in casual seafood dining, is slated to shutter an additional 23 locations across the U.S. by August 31, as detailed in a recent court filing related to its ongoing bankruptcy proceedings.
This latest wave of closures will affect 15 states, with Florida, Illinois, and Virginia each seeing the loss of three restaurants. Other impacted states include Arizona, Arkansas, California, Colorado, Georgia, Indiana, Minnesota, Missouri, New York, North Carolina, Ohio, and South Carolina. These closures follow earlier cuts this summer, leaving around 500 restaurants in operation compared to 650 just a year ago.
The court filing emphasized that the locations set to close are “likely to continue to drive losses” and are seen as unnecessary for the company’s future. This strategic reduction aims to streamline operations and work towards restoring financial stability amidst tough market conditions.
Flourish
Red Lobster’s challenges stem from several factors, including management issues, stiff competition, and rising costs driven by inflation. The decline has been especially pronounced since 2020, coinciding with its acquisition by Thai Union, a major seafood supplier.
Under Thai Union’s leadership, reports indicate that Red Lobster’s corporate culture suffered. Cost-cutting tactics, such as changing suppliers and poor promotional decisions, have deepened its financial struggles. For instance, the permanent introduction of the “$20 Endless Shrimp” promotion led to an $11 million loss.
Amid its bankruptcy crisis, Red Lobster is set to be sold to Fortress Credit Corp., a lender experienced in the restaurant industry. Fortress has already extended a $100 million loan to help the chain maintain operations through this rough patch.
In an effort to revive the brand post-bankruptcy, Fortress plans to appoint Damola Adamolekun as the new CEO upon restructuring. Adamolekun previously led P.F. Chang’s for four years until August 2023.
Here are the latest Red Lobster locations slated for closure:
Arizona
- 1521 S. Yuma Palms Pkwy., Yuma
Arkansas
- 8407 W. Markham St., Little Rock
California
- 8703 Murray Drive, La Mesa
Colorado
- 4925 N. Academy Blvd., Colorado Springs
Florida
- 326 Miracle Strip Pkwy., Fort Walton Beach
- 5110 N. 9th Ave., Pensacola
- 8909 U.S. Highway 19, Port Richey
Georgia
- 6550 Tara Blvd., Jonesboro
Illinois
- 1604 N. State Road 50, Bourbonnais
- 902 Commons Drive, Geneva
- 4625 N. Sterling Ave., Peoria
Indiana
- 4353 Franklin St., Michigan City
Minnesota
- 8900 Golden Valley Road, Golden Valley
- 12515 Elm Creek Blvd. North, Maple Grove
Missouri
- 2381 Maplewood Commons Drive, Maplewood
New York
- 925 Hunts Point Ave., Bronx
- 750 Upper Glen St., Queensbury
North Carolina
- 304 A Western Blvd., Jacksonville
Ohio
- 17227 Southpark Center, Strongsville
South Carolina
- 1270 Knox Abbott Drive, Cayce
Virginia
- 555 S. Van Dorn St., Alexandria
- 4415 S. Laburnum Ave., Richmond
- 709 Independence Blvd., Virginia Beach