Summary:
Red Lobster has abruptly closed about 100 of its roughly 700 restaurants and is auctioning off equipment from many of these sites. The closures come amid reports that the chain is considering filing for Chapter 11 bankruptcy protection. TAGeX Brands, a restaurant industry liquidator, announced it is conducting a large-scale auction of equipment from over 50 Red Lobster locations, with the first auctions ending soon. The closures and financial struggles have surprised employees and patrons alike. Factors contributing to Red Lobster’s difficulties include the pandemic, high interest rates, labor costs, and an unsuccessful all-you-can-eat shrimp promotion. The chain has been seeking a buyer to avoid bankruptcy, but its largest investor, Thai Union, has also expressed intentions to sell its stake due to sustained financial losses.
Red Lobster Abruptly Shuts Roughly 100 Restaurants Nationwide
