Red Lobster on the brink as dozens of restaurants abruptly closed

(Source: Bigstock)

Seafood restaurant chain Red Lobster has abruptly shut down more than 50 locations around the country amid its ongoing struggle to stay afloat.

TAGeX Brands, a restaurant liquidator, confirmed to Business Insider it was auctioning off kitchen items and furniture at 50+ former Red Lobster restaurants. The closures were part of the Red Lobster’s footprint rationalization, the liquidator added.

The auction began Monday and will end Thursday, with four sales already completed on the first day.

The restaurant chain has not made a public announcement about this, but many stores were marked as “temporarily closed” on its website.

Red Lobster, which has around 650 restaurants nationwide, was reportedly considering filing for Chapter 11 bankruptcy protection last month. The chain has tapped a restructuring expert as its chief executive, a possible indicator of an impending bankruptcy, according to CNN.

The company recently attributed its $11 million losses in the third quarter of FY23 to its all-you-can-eat shrimp promotion. The chain has cycled through four CEOs since 2020.

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