Red Lobster restaurants closing locations permanently nationwide? Auction suggests yes
Red Lobster locations across the country are popping up with closed signs.
A look at the restaurant chain's website reveals 87 stores temporarily closed across 27 states. But some of them have their equipment up for auction.
TAGeX Brands recently posted an online auction labeled "The Largest Restaurant Equipment Auction Ever," featuring restaurant equipment from closed Red Lobster locations. The 48 locations listed match temporary closures on the company's website.
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Here's what you need to know:
Is Red Lobster closing restaurants permanently near me?
There are currently 87 Red Lobster restaurants listed as temporarily closed on the company's website, but 48 of those restaurants have kitchen equipment up for auction. The online auction ends at 9:30 a.m. Thursday, May 16.
Why did Red Lobster close? 'Ultimate Endless Shrimp'
That's right. 'Ultimate Endless Shrimp.'
A Bloomberg report said the seafood restaurant chain considered a Chapter 11 bankruptcy fiing last month in an attempt to restructure debt. Cash flows had reportedly been weighed down by mutliple issues, including labor costs and leases.
According to Restaurant Business Magazine, an effort to drive traffic into the restaurants came about in 2023 − the "Ultimate Endless Shrimp" deal.
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The limited-time promotional deal offering two options of nonstop shrimp started at $20 per person and popularity exploded beyond expectations. In fact, the deal accidentally became a major contributing factor toward a third-quarter loss of $11 million and is now priced at $25.
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Red Lobster was headed toward a $20 million loss for 2023, according to comments made by parent company Thai Union Group CFO Ludovic Regis Henri Garnier in a November earnings report call.
"We knew the price was cheap," the magazine says Garnier told investors. "We wanted to boost our traffic, and it didn't work."
The restaurant still wants to keep 'Ultimate Endless Shrimp' on the menu.
"And of course we need to be much more careful regarding what are the entry points and what is the price point we are offering for this promotion," Garnier said.
Is Red Lobster closing any Indiana locations?
Yes. Red Lobster has two locations listed as closed on the website. Both stores are also involved in the kitchen equipment auction which ends in less than two days.
Illinois mayor hits Facebook after 2 statewide Red Lobster locations close
An Illinois mayor in the city of Danville shared the experience of the local store that was shuttered after 31 years of service to the community. Mayor Rickey Williams Jr. was clearly upset by the closing and offered support to the staff affected.
Which Red Lobster locations are closing in Illinois?
Red Lobster kitchen equipment auction online via TAGeX Brands
TAGeX Brands is hosting "The Largest Restaurant Equipment Auction Ever" featuring Red Lobster restaurant kitchen equipment. For a complete list of the 48 stores involved in the auctions, visit tagexbrands.com/red-lobster.
The auctions end at 9:30 a.m. Thursday, May 16. Pick-up is from 9 a.m. to 3 p.m. local time Friday, May 17.
Winning bidders are responsible for the appropriate removal and loading of their items. No one on site can assist with disconnecting, removing or loading items.
2024 Red Lobster closings list: restaurant closures near me
Each of these restaurants are currently listed as temporarily closed on the website:
Alabama
Arizona
California
Colorado
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Louisiana
Maryland
Mississippi
Missouri
New Jersey
New York
North Carolina
North Dakota
Oklahoma
Pennsylvania
South Carolina
Tennessee
Texas
Virginia
Washington
Wisconsin
Chris Sims is a digital content producer at Midwest Connect Gannett. Follow him on Twitter: @ChrisFSims.
This article originally appeared on Journal Star: 2024 Red Lobster closing list: Why is Red Lobster closing near me?
