Roughly two dozen more Red Lobster locations are scheduled to close within the coming days as part of the seafood restaurant chain's ongoing bankruptcy proceedings.
Monday, August 26, 2024 2:16PMRoughly two dozen more Red Lobster locations are scheduled to close within the coming days as part of the seafood restaurant chain's ongoingA recent court filing shows that the company is rejecting the leases of an additional 23 locations by Saturday, August 31, joining the more than 100 restaurants that Red Lobster closed earlier this summer. Once complete, the chain will have around 500 outlets left - a sharp decline from the 650 it had just last year.
Red Lobster is in the process of selling itself to Fortress Credit Corp., a lender experienced in restaurant management that also owns Krystal, Logan's Roadhouse and J. Alexander's. The firm recently gave the seafood chain a $100 million loan to allow it stay afloat.Mismanagement, competition, inflation and other factors brought down Red Lobster, which has been a pioneer in the restaurant industry.
Under Thai Union's leadership, Red Lobster's culture turned toxic, former leaders told CNN. Red Lobster cut costs, removed longtime suppliers and implemented strategies that backfired, such as making $20 endless shrimp a permanent menu item. The chain lost $11 million on the endless shrimp deal. The new list of restaurants leases identified to be closed "are likely to continue to drive losses" and the company does "not anticipate needing in order to operate their business going forward and can be rejected," the filing said.California-4925 N. Academy Blvd., Colorado Springs-8909 U.S. Highway 19, Port Richey
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