Flavor Flav might be on a mission to save Red Lobster’s Cheddar Bay Biscuits, but it seems not even his passion can stop the chain’s ongoing struggles. Red Lobster has announced plans to close 23 more restaurants across the country.
According to a recent court filing, the closures will take effect by Saturday, August 31. This comes as the seafood giant filed for voluntary Chapter 11 bankruptcy in Florida in May.
The locations set to close span multiple states, including Florida, Illinois, Virginia, and others. Since the bankruptcy filing, Red Lobster has already shut down over 100 of its 530-plus restaurants.
The court documents highlight that Red Lobster is scrutinizing leases and identifying stores that are likely to keep driving losses. As a result, the company has determined that these 23 restaurants are not essential to its future operations.
Earlier rounds of closures saw TAGeX Brands handling the liquidation of the restaurant’s assets through auctions. TAGeX CEO Neal Sherman described the effort as the company’s largest restaurant liquidation ever, involving the sale of furniture, fixtures, and equipment from the shuttered locations.
Red Lobster’s financial troubles have been mounting, with the company reportedly holding over 100,000 creditors and estimated assets and liabilities ranging between $1 billion and $10 billion. The situation worsened after the chain’s signature endless shrimp deal reportedly led to an $11 million loss.
Discover more from Baller Alert
Subscribe to get the latest posts sent to your email.
