The financially ailing Red Lobster restaurant chain is closing 48 of its 650 U.S. locations.
Reports surfaced last month that Red Lobster was considering a Chapter 11 bankruptcy filing, but to date the company has not pursued this strategy. Thai Union Group acquired the chain in 2020, but earlier this year it announced plans to exit its investment in Red Lobster and take a write off because the chain’s “ongoing financial requirements no longer align with Thai Union’s capital allocation priorities.”
The restaurants to be closed are spread across 21 states. TAGeX Brands, a restaurant liquidation company, has been contracted to auction the equipment from the closed locations in an online auction.
