Red Lobster has reportedly closed dozens of restaurants nationwide, including Columbia, Gaithersburg, Laurel, and Downtown Silver Spring.
Rochester, N.Y.-based restaurant liquidator TAGeX Brands announced this week that it will auction off equipment from over 50 closed Red Lobster sites as part of the seafood chain’s “footprint rationalization” strategy.
While some affected locations are listed as “temporarily closed” or “unavailable” on Red Lobster’s website, the abrupt closures come ahead of anticipated bankruptcy filings as early as next week. The Wall Street Journal reported Tuesday evening that the casual dining chain seeks to restructure its debt load after facing financial challenges.
Red Lobster, a company with a 56-year history and multiple ownership changes, has struggled to maintain stable management. Earlier this year, co-owner Thai Union Group, a major seafood supplier, announced its intention to exit its minority investment in the dining chain, citing a $19 million share of losses from Red Lobster for the first nine months of 2023, according to Associated Press.
Reports indicate that customer demand for Red Lobster’s popular $20 Endless Shrimp promotion overwhelmed the Orlando-based chain’s financial capabilities, contributing significantly to the losses.
“We apologize to our loyal customers,” reads a sign at the now-closed Downtown Silver Spring location at 8533 Georgia Ave. “We will be closing our doors. You will be missed.”
fly high, silver spring red lobster 🕊️ pic.twitter.com/8NU1Yg7GG1
— Mishka Espey (they/them) (@mxespey) May 14, 2024
With over 700 locations worldwide, including in more than 40 states, Red Lobster traces its roots back to 1968 when the first restaurant opened in Lakeland, Florida. The chain expanded rapidly in the following decades but now faces an uncertain future as it grapples with financial difficulties.