Red Lobster to Close 23 More Restaurants After Filing for Bankruptcy in May

Mar. 15, 2025

Red Lobster.Photo:Luke Sharrett/Bloomberg/Getty

Luke Sharrett/Bloomberg/Getty

Red Lobster is shuttering over 20 more of its restaurants across the country.

Per to the filing, which was submitted on Aug. 22., the closures include several locations in Florida, Illinois and Virginia, as well as Arkansas, Arizona, California, Colorado, Georgia, Indiana, Minnesota, Missouri, New York, North Carolina, Ohio and South Carolina.

Red Lobster.Getty

Getty

Red Lobster currently operates over 530 restaurants, mainly in the U.S. and Canada. However, since filing for bankruptcy, the Orlando-based company hasclosed over 100 restaurants.

The filing states that the establishment has been reviewing leases “that are likely to continue to drive losses” based on an evaluation that “is centered on value maximization.”

Per the filing, Red Lobster does “not anticipate needing” the 23 identified restaurants “in order to operate their business going forward.”

During aprevious round of closures, TAGeX Brands CEONeal Shermanshared in a LinkedIn post that his company was handling liquidating the restaurant’s belongings via auctions. He wrote thatthe auctionsare the company’s “largest restaurant liquidation ever” and will include furniture, fixtures and equipment.

Ony May 19, the seafood chain filed for voluntary Chapter 11 bankruptcy amid growing debt. At the time, theAssociated Pressreported that the company has over 100,000 creditors and estimated assets between $1 billion and $10 billion. The outlet also stated that the company’s estimated liabilities are between $1 billion and $10 billion.

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Prior to filing for bankruptcy, it was reported that the company’s signature endless shrimp dealcaused the chain to lose $11 million.

source: people.com