Map Shows Red Lobster Closing 23 Locations

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Adeola Adeosun

By Adeola Adeosun

Weekend Night Editor

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Red Lobster, the once-thriving seafood restaurant chain, is set to close an additional 23 locations across the United States by August 31, according to a recent court filing amid the company's ongoing bankruptcy proceedings.

The new round of closures span 15 states, with Florida, Illinois and Virginia each losing three locations. Other affected states include Arizona, Arkansas, California, Colorado, Georgia, Indiana, Minnesota, Missouri, New York, North Carolina, Ohio, and South Carolina. This move follows the closure of over 100 Red Lobster locations earlier this summer, bringing the total number of restaurants operating down to approximately 500—a stark contrast to the 650 locations that were open last year.

The decision to close these specific restaurants was detailed in a court filing from last week, which stated that the identified locations "are likely to continue to drive losses" and are not considered necessary for the company's future operations. This strategic downsizing is part of Red Lobster's efforts to streamline its operations and regain financial stability amid challenging market conditions.

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Newsweek has contacted Red Lobster via email on Monday for comment.

Map Shows Red Lobster Closing 23 Locations

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Red Lobster's troubles can be traced back to a combination of factors, including mismanagement, intense competition in the casual dining sector, and the impacts of inflation on operational costs and consumer spending habits. The company's decline has been particularly pronounced since 2020 when Thai Union, a global seafood supplier, became its leading shareholder.

Under Thai Union's stewardship, former leaders told CNN earlier this year that Red Lobster's corporate culture took a turn for the worse. Cost-cutting measures, including the removal of longtime suppliers, and ill-fated promotional strategies contributed to the chain's financial woes. One notable misstep was the decision to make the "$20 Endless Shrimp" offer a permanent menu item, which reportedly resulted in an $11 million loss for the company.

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As Red Lobster navigates through its bankruptcy, it is in the process of being sold to Fortress Credit Corp., a lender with extensive experience in restaurant management. Fortress, which also owns other restaurant chains such as Krystal, Logan's Roadhouse, and J. Alexander's, has provided Red Lobster with a $100 million loan to maintain operations during this transition period.

In a move that signals a potential turnaround, Fortress announced on Monday that it plans to install Damola Adamolekun as Red Lobster's new CEO once the chain emerges from bankruptcy. Adamolekun previously served as the chief executive of P.F. Chang's for four years until August 2023.

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Below are the latest locations that Red Lobster plans to close:

Arizona

Arkansas

California

Colorado

Florida

Georgia

Illinois

Indiana

Minnesota

Missouri

New York

North Carolina

Ohio

South Carolina

Virginia

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