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Red Lobster is abruptly closing dozens of restaurants
CNN New York –
Struggling Red Lobster is abruptly closing at least 48 of its restaurants nationwide, according to a top restaurant manager.
TAGeX Brands is hosting an online auction of kitchen equipment, furniture and other items from Red Lobster content in restaurants closing. The auction starts on Monday and continues until Thursday, according to company founder Neil Sherman.
Red Lobster locations in Buffalo, Orlando, Jacksonville and other cities were listed as “temporarily closed” on Red Lobster’s website, according to local news reports.
Red Lobster did not respond to CNN’s requests for comment. The company has approximately 650 locations.
Red lobster is supposedly considering filing for bankruptcy protection. The chain has hired a restructuring expert as its chief executive, a possible indicator of imminent bankruptcy.
Red Lobster was a pioneer in the restaurant industry but has declined in recent years due to a number of factors, including corporate mismanagement, say former chain leaders and restaurant analysts.
In 2020, Thai Union, a longtime supplier to Red Lobster, acquired an undisclosed financial stake in the chain, becoming a major shareholder. Since then, Red Lobster has gone through four CEOs and a shrimp all-you-can-eat deal last year that slowed table service and reduced Thai Union’s profitability.
Thai Union said earlier this year it would divest from Red Lobster and suffer a $530 million loss on its investment.