Red Lobster, the well-known seafood restaurant chain, is reportedly set to shutter additional locations, with 23 restaurants across the country slated for closure by the end of August. This information comes after the company's recent bankruptcy filings. Restaurant business highlighted that Red Lobster plans to exit these struggling sites by August 31, a move following an earlier wave of over 90 closures in May.
Amid the downturn, an Orlando judge is expected to deliberate over the company's intentions, particularly the three Florida locations in question — in Fort Walton Beach, Pensacola, and Port Richey. According to documents filed on August 22, as reported by Tallahassee Democrat, these sites will be vacated pending the judicial review set for August 29. The filings reveal a grim portrayal of the chain's health, with a steep 30% drop in guest counts since 2019 and a reported loss of $76 million in the past year.
The series of closures marks a decline of more than 20% of the chain's locations since the end of 2023. This trajectory has not only affected the chain's physical footprint but also the communities that have grown accustomed to its presence. Florida has not been immune to these changes, with at least 17 locations in the Sunshine State already shuttered, as detailed by WFLA.
Alongside the closures, there's the impending sale of Red Lobster to Fortress Investment Group, with a hearing for this transaction scheduled for September 5 — a detail that surfaced in bankruptcy proceedings and was reported by WFLA.
Red Lobster's challenges reflect broader trends affecting many restaurants amid changing economic conditions. With a court decision pending, employees and patrons in Florida are awaiting news. The company is streamlining by closing unprofitable locations, facing an uncertain future that could significantly alter its business model and brand identity, as reported by Local10.
