[ad_1]
The ship is sinking and taking endless shrimp with it.
Seafood chain Red Lobster announced that it is set to shutter 23 additional restaurants in the forthcoming days. This development emerged amidst the chain's bankruptcy turmoil, according to court documents analyzed by CNN. The closure of these locations by August 31st is just another wave in the storm that has seen the company close more than 100 of its dining establishments earlier in the summer.
These newest setbacks will leave the once-thriving chain with a mere 500 outlets, drastically down from the 650 that were operational last year. Navigating through murky waters, Red Lobster is attempting to find a lifeline in Fortress Credit Corp., a lender seasoned in restaurant management that boasts ownerships such as Krystal and Logan's Roadhouse. Fortress extended a $100 million loan to keep the chain afloat amidst financial distress, and now Red Lobster is hoping they'll buy it.
Related: Bob's Stores to Shutter All Locations, Stop Business After 70 Years
The restaurant has faced a sea of troubles including mismanagement, fierce competition, and rising costs. Taking the helm in 2020, Thai Union, a titan in the global seafood market, steered Red Lobster into bankruptcy by May 2024. Under this new leadership, the company's work culture deteriorated, and decisions such as axing venerable suppliers and introducing a permanent $20 endless shrimp promotion backfired, plunging the chain into an $11 million loss from the offer alone.
The current filing states that the restaurants targeted for closure are "likely to continue to drive losses and are unnecessary for the company's survival moving forward." With its nets cast wide, Red Lobster navigates the choppy waters of the restaurant industry, hoping for a turn of the tide in its beleaguered saga.
Here is the complete list of shuttering Red Lobsters, according to CNN:
Arizona
1521 S. Yuma Palms Pkwy., Yuma
California
-8703 Murray Drive, La Mesa
-8407 W. Markham St., Little Rock
Colorado
-4925 N. Academy Blvd., Colorado Springs
Florida
-326 Miracle Strip Pkwy., Fort Walton Beach
-5110 N. 9th Ave., Pensacola
-8909 U.S. Highway 19, Port Richey
Georgia
-6550 Tara Blvd., Jonesboro
Illinois
-1604 N. State Road 50, Bourbonnais
-902 Commons Drive, Geneva
-4625 N. Sterling Ave., Peoria
Indiana
-4353 Franklin St., Michigan City
Minnesota
-8900 Golden Valley Road, Golden Valley
-12515 Elm Creek Blvd. North, Maple Grove
Missouri
-2381 Maplewood Commons Drive, Maplewood
New York
-925 Hunts Point Ave., Bronx
-750 Upper Glen St., Queensbury
North Carolina
-304 A Western Blvd., Jacksonville
Ohio
-17227 Southpark Center, Strongsville
South Carolina
-1270 Knox Abbott Drive, Cayce
Virginia
-555 S. Van Dorn St., Alexandria
-4415 S. Laburnum Ave., Richmond
-709 Independence Blvd., Virginia Beach
