Two more Texas Red Lobster locations close amid bankruptcy: See updated list

Alexis Simmerman, Austin American-Statesman
·2 min read

Red Lobsters in Victoria and Tyler have joined the list of closed Texas locations, which has grown to ten since closures began last week.

Red Lobster files Chapter 11 bankruptcy

As of Thursday morning, nearly 100 Red Lobster locations across 28 states had abruptly closed. The closures began just days before the company filed for Chapter 11 bankruptcy in Florida, as announced Sunday night.

According to the company, it intends to use the proceedings to "drive operational improvements, simplify the business through a reduction in locations, and pursue a sale of substantially all of its assets."

TAGeX Brands, a company that helps firms with closures and liquidations, auctioned off equipment from 48 Red Lobster locations. The auctions ended periodically Thursday. Each winner was set to receive the "entire contents of the Red Lobster location they bid on," the website said.

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.

The company's bankruptcy filing in the Middle District of Florida details how Red Lobster has struggled in various ways, including a 30% drop in guests since 2019. In a 124-page document obtained by USA TODAY on Tuesday, Red Lobster CEO Jonathan Tibus explains why the seafood restaurant chain filed for bankruptcy on Sunday and why he supports the decision.

"Recently, the debtors have faced a number of financial and operational challenges, including a difficult macroeconomic environment, a bloated and underperforming restaurant footprint, failed or ill-advised strategic initiatives, and increased competition within the restaurant industry," Tibus said in the bankruptcy document.

LIST: Red Lobster restaurant closings in Texas

As of Thursday morning, at least ten Red Lobster locations in Texas have closed:

Map: How many Red Lobster locations have closed in the U.S.?

See full list: Red Lobster lists 99 restaurants closed in 28 states. See locations closing in your state

Who owns Red Lobster restaurants?

Thai Union Group − which is based in Thailand − has been the largest shareholder since 2020, owning 49% of the company. Darden Restaurants originally sold off Red Lobster to private equity firm Golden Gate Capital in 2014 for about $2.1 billion.

— USA TODAY contributed to this report.

This article originally appeared on Austin American-Statesman: 10 Red Lobster locations now closed in Texas. See updated list