The casual seafood chain has been around for decades, but mounting financial troubles, along with a failed endless shrimp promotion, have forced the chain to shutter restaurants and sell off kitchen equipment.
Red Lobster has been a familiar name in casual dining for decades, but this week the chain began closing dozens of its restaurants across the country, including one in San Diego, fueling speculation that the troubled company was headed for a sale or bankruptcy. Restaurant equipment — from lobster tanks and bread warmers to table tops and microwaves — are up for auction at more than 50 Red Lobsters, according to the company overseeing the liquidation, TAGeX Brands.
'Red Lobster has been on a long 20-year slide,' says San Diego restaurant analyst John Gordon. 'Once they were picked up by a private equity firm and they no longer had their real estate, they had to start paying rent, and that's a profit and loss pressure they didn’t have before. They also didn’t do so well after the pandemic. They never truly recovered from that.' The Mira Mesa restaurant is one of six locations in California that are listed as 'temporarily closed.
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