Just over two months ago, Red Lobster, a beloved seafood chain known for its cheddar bay biscuits, filed for Chapter 11 bankruptcy. Since then, at least seven additional locations across six states have closed. Despite these closures, hundreds of Red Lobster restaurants remain open, offering plenty of shrimp and other seafood delights to loyal customers, though perhaps in less abundant quantities than before.
In May, when Red Lobster first announced its bankruptcy filing, its website listed 99 restaurants in 28 states as “temporarily closed.” Those stores are now marked as “closed,” with many removed from the site entirely. Recently, seven more locations, including two in Florida, have also shut their doors. These closures bring the total to just over 15% of the 641 restaurants that were in operation at the start of the year.
Florida has seen the most significant impact, with 19 Red Lobster locations closing. Texas follows with 11 closures, and California has seen nine restaurants shut down. However, despite these losses, Red Lobster still maintains a substantial presence across the country. The chain, founded in 1968, remains the largest seafood restaurant chain in the U.S., with over 500 locations in 44 states, according to its website.
Florida still boasts 40 operating Red Lobster restaurants, including three in Orlando, even after the recent closures. Texas surpasses Florida with 44 locations, despite the recent shutdown of 11 restaurants in the state.
Red Lobster has stated that the bankruptcy proceedings are aimed at driving operational improvements, simplifying the business by reducing the number of locations, and pursuing a sale of most of its assets. A hearing is scheduled for Monday in Orlando to approve the sale of the chain to RL Purchaser LLC. This potential buyer is controlled by Fortress Investment Group, in collaboration with SPB Hospitality, which operates other well-known restaurant brands such as Gordon Biersch, Old Chicago Pizza and Taproom, Logan’s Roadhouse, Krystal, and Stoney River.
The company has attributed its financial struggles to lease increases and market oversaturation in certain areas. By shedding less profitable locations, Red Lobster hopes to stabilize its operations and focus on its more successful restaurants. Despite the challenges, the iconic seafood chain continues to serve its famous dishes to customers across the country, working towards a brighter, more sustainable future.