Red Lobster, a seafood chain with over 650 locations across the country, is abruptly closing at least 48 of its restaurants. TAGeX Brands, a leading restaurant liquidator, is conducting an online auction of Red Lobster kitchen equipment, furniture, and other contents from the closing restaurants. The auction begins on Monday and continues through Thursday, as confirmed by company founder Neal Sherman.
Red Lobster has been listed as “temporarily closed” on its website in cities like Buffalo, Orlando, and Jacksonville. Despite multiple requests for comment, Red Lobster has not responded to CNN. According to local news reports, Red Lobster locations in these cities have been sold to other restaurant chains or have shut down entirely.
Reports suggest that Red Lobster is considering filing for bankruptcy protection. The appointment of a restructuring expert as its CEO has raised suspicions of an impending bankruptcy. Once a pioneer in the restaurant industry, Red Lobster has faced challenges in recent years due to corporate mismanagement and other factors. Former leaders at the chain and restaurant analysts have expressed concerns about the company’s financial stability.
In 2020, Thai Union acquired an undisclosed financial stake in Red Lobster and became a key shareholder. However, Red Lobster experienced internal instability and cycled through four CEOs before announcing plans for all-you-can-eat shrimp deals that impacted table service and Thai Union’s profitability. Earlier this year, Thai Union announced plans to divest from Red Lobster and incurred a $530 million loss on its investment.
The closure of these restaurants will likely result in job losses for many employees who worked there.
TAGeX Brands will provide more information about the auctioned items soon.
