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Red Lobster Is Closing 48 Locations. People Aren’t Happy

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Red Lobster
A sign is posted on the exterior of a Red Lobster restaurant on April 17, 2024 in Rohnert Park, California. Justin Sullivan—Getty Images

(CTN News) – According to a restaurant liquidator, the restaurant chain Red Lobster is experiencing financial difficulties, which has resulted in the closure of hundreds of sites around the country, including several in the states of New York and New Jersey itself.

At least forty-eight facilities, spread over twenty-one states, will be temporarily shut down. To facilitate the sale of the inventory that has been accumulated as a result of these closures, TAGeX Brands will hold an online auction that will include kitchen appliances and furnishings.

According to a post that was made on LinkedIn by the owner of TAGeX Brands, the auction, which started on Monday, is expected to continue until Thursday, May 16th. Neal Sherman wrote in his journal, “The furniture, fixtures, and equipment from specific Red Lobster locations MUST GO IMMEDIATELY!”

The business, which currently manages over 650 locations, has shut down enterprises in a number of different cities, including Bridgewater, New Jersey, Orlando, New York, and Buffalo, New York, among an extensive number of other cities.

According to a report by Bloomberg, the restaurant company is considering filing for bankruptcy under Chapter 11 in an effort to reorganize its debt.

In the month of March, the restaurant chain that was founded in 1968 chose Jonathan Tibus, a man who has previous experience in the field of organizational restructuring, to serve as its new chief executive officer.

Uncertainty persists regarding the reopening status of the stores that have been closed. When TIME attempted to get a statement from Red Lobster, the company declined.

The “Ultimate Endless Shrimp” promotion that Red Lobster performed during the summer of 2023 resulted in a loss of $11 million for the firm during the third quarter of that year.

This loss was mostly related to the fact that the promotion cost $20. When this campaign was running, customers were given the opportunity to purchase an endless supply of shrimp.

Red Lobster has made the decision to extend the offer of the menu item, which was originally only available for a short time, to an indefinite period of time. It has been reported that the restaurant’s subsequent attempt to raise the price of the promotion to $25 did not result in a reduction in the amount of money lost.

Ludovic Louis Regis Locomo In the fall of 2017, Henri Garnier, the Chief Financial Officer of Thai Union Group, the company that owns Red Lobster, indicated that the objective of the offer was to entice additional customers to visit the institution.

“Therefore, our attempt to increase footfall was unsuccessful,” he added, as reported by Restaurant Business Magazine to have been mentioned.

Instantaneously, users of social media platforms started talking about the shutdown. There was even a beginning of the news spreading on X.

Regrettably, The Red Lobster has ceased operations completely.

According to the assessment of one user, “They consistently served the finest seafood.” “Americans devoured Red Lobster into bankruptcy,” claimed another scribe. Furthermore, a few individuals reflected on the significance that Red Lobster had carried for them over the course of their relationships with the restaurant.

It was just brought to my attention that the Red Lobster store where I had worked for a significant amount of time has discontinued operations.

If it weren’t for that career opportunity, my current lovely family and I would not have had the chance to meet my spouse. “It closes yet another chapter in my life with such sorrow,” a second user of X cried.

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Alishba Waris is an independent journalist working for CTN News. She brings a wealth of experience and a keen eye for detail to her reporting. With a knack for uncovering the truth, Waris isn't afraid to ask tough questions and hold those in power accountable. Her writing is clear, concise, and cuts through the noise, delivering the facts readers need to stay informed. Waris's dedication to ethical journalism shines through in her hard-hitting yet fair coverage of important issues.

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