In a surprising move, Red Lobster Closures have suddenly impacted at least 48 restaurant locations across the nation, including two in your state. The move comes amid reports of financial trouble for the popular seafood chain.
Casey Cron reports live from Bloomingdale, where the doors to the closed Red Lobster business are locked. Several customers arrived disappointed, looking forward to a meal but shocked by the news of the closures.
Financial Woes Blamed for Sudden Restaurant Closures
News of the Red Lobster closures started to spread quickly today when restaurant liquidator TAGeX Brands announced what it’s calling the largest restaurant equipment auction ever. The auction currently lists 48 Red Lobster locations as part of it, including restaurants in Bloomingdale and Danville, Illinois.
This comes amid signs that Red Lobster could soon file for bankruptcy. Reports indicate the Orlando, Florida-based company has been struggling to stay afloat in recent years, partly due to rising lease and labor costs. Additionally, Red Lobster’s popular all-you-can-eat endless shrimp deal apparently didn’t help, with customer demand outweighing profits.
Customers Left Disappointed as Popular Seafood Chain Shuts Downpen_spark
Right now, it appears employees at the closed Bloomingdale Red Lobster location are clearing crates of equipment, food, and ingredients from the back. They weren’t happy about being filmed and blocked the view with cars.
One customer, traveling for work, was shocked to hear of the closure. He said he was looking for a decent meal and Red Lobster usually offered a budget-friendly option with good food. He added his surprise because the restaurant always seemed busy.
Reporters have reached out to Red Lobster for comment and to find out when they notified employees of the closures but have not yet heard back.
The top bidder in the auction will walk away with everything in any given closed Red Lobster restaurant, including kitchen equipment and dining furniture.
