Dozens of Red Lobster restaurants across the United States have unexpectedly closed their doors, as the Orlando-based seafood chain faces bankruptcy rumors. The closures, which took place on Monday, included one of the locations in Silverdale, Washington, amongst over 80 nationwide in at least 27 states listed as "temporarily closed" on the company's website, KING5 reported. Other local locations, such as in Lynnwood, Federal Way, Tacoma, and Olympia, appear unaffected.
Red Lobster's financial woes have been mounting with reports last month by multiple outlets indicating the chain was seeking a buyer to stave off Chapter 11 proceedings. The chain, famous for its seafood spreads and particularly its endless shrimp offers, has struggled to stay afloat amidst a tide of internal and financial challenges. As of now, the company has not publicly acknowledged the closures nor responded to requests for comment, according to a KGW report.
Earlier executive shifts have seen a slew of C-suite changes within the company, including a new CEO, chief marketing officer, chief financial officer, and chief information officer, all of whom left within two years. These administrations saw the return of their endless shrimp menu deal last summer, which led to a $11 million loss for the company. The upheaval extended to supply chain relationships as well, with Thai Union, Red Lobster's top supplier, recently severing ties with the restaurant chain.
Amidst the speculation, TAGeX Brands has announced an online auction for the contents of the closed Red Lobster restaurants. The company took to social media to announce the auction. "Select Red Lobster locations CLOSED today! Prepare for the LARGEST restaurant liquidation EVER! Fixtures, furniture, and equipment MUST GO," the liquidator wrote on X, "Auctions start NOW. SINGLE winner for each location. WINNER TAKES ALL." This liquidation event, which runs through Thursday, involves over 50 Red Lobster locations, KIRO 7 reported.
