Red Lobster is closing nearly 50 locations, including at least 7 in Texas. See where.

Alexis Simmerman, Austin American-Statesman
·2 min read
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Many Red Lobster locations throughout the country are now closed, including a handful in Texas. National media reports nearly 50 restaurants were shuttered on Monday.

What does this mean for the popular restaurant chain and its Texas locations? Here's what we know.

Is Red Lobster going out of business?

Red Lobster, the once popular seafood restaurant that started in Lakeland, Florida, in the late 1960s, was considering a Chapter 11 bankruptcy filing, according to multiple news sources.

In an April 2024 Bloomberg report citing sources familiar with the discussions, the seafood chain was considering a bankruptcy filing to renegotiate burdensome leases and address other long-term contracts, as well as rising labor costs.

This sign was in the door Monday (May 13, 2024) at the Red Lobster at 10010 U.S. 441 in Leesburg.
This sign was in the door Monday (May 13, 2024) at the Red Lobster at 10010 U.S. 441 in Leesburg.

According to Bloomberg, Red Lobster has been finding it difficult to make money with its current leases and labor costs. CNN also reported the company suffered $12.5 million operating loss in the fourth quarter of 2023, despite its popular endless shrimp promotion.

By filing for Chapter 11 bankruptcy, the company would stay open while it reorganizes funds to pay off existing debt over time, seeking to continue with better financial footing.

Bloomberg also reported Red Lobster is being advised by law firm King & Spalding on the subject. Any discussions about restructuring are ongoing and no final decisions have been made about a bankruptcy filing as of April 18.

TAGeX Brands, a company that helps firms with closures and liquidations, announced on its website that it would be auctioning off equipment this week from more than 50 Red Lobster restaurants. The company page is titled "THE LARGEST RESTAURANT EQUIPMENT AUCTION EVER."

A sign is posted in front of a Red Lobster restaurant on May 16, 2014 in San Bruno, California.
A sign is posted in front of a Red Lobster restaurant on May 16, 2014 in San Bruno, California.

List: Red Lobster closures in Texas

At least seven Red Lobster locations in Texas are listed as temporarily closed. Here's the list:

  • College Station: 1200 University Dr E

  • Dallas: 9069 Vantage Point Dr

  • Houston: 302 Farm to Market 1960 Road West Cypress Pointe

  • Lake Jackson: 104 TX-332, Brazos Mall

  • Longview: 3515 McCann Rd

  • Lufkin: 1919 South 1st Street Lufkin Mall

  • Pasadena: 4002 Spencer Hwy

Although the restaurant's website doesn't explicitly state the locations have been closed, the closures can be identified by their listed hours: Instead of Red Lobster's usual hours of 11 a.m. to 9 p.m., the closed locations are listed as open from 12 a.m. to 12 a.m.

— The Daytona Beach News-Journal reporters Jennifer Sangalang, Samantha Neely and John Gallas contributed to this report.

This article originally appeared on Austin American-Statesman: Red Lobster closes 50 locations in US, including 7 in Texas