Red Lobster Holds ‘Winner Takes All’ Auction After Abruptly Closing Dozens of U.S. Restaurants

RED LOBSTER is auctioning off everything in over 50 locations nationwide, including furniture, supplies and kitchen equipment.

Bidders can compete for content at Red Lobster locations in 21 states.

Restaurant liquidator TAGeX announced the sale as “the largest restaurant equipment auction ever.”

“As of today, select Red Lobster locations are closed. In our restaurant equipment marketplace, we are auctioning off more than 50 locations nationwide,” said the auction website read.

“These auctions are winner-take-all auctions – meaning each winner will receive all of the contents of the Red Lobster location they bid on.”

The last day to bid is May 16th.

LOOKS LIKE FISH

The closures come as Red Lobster considers filing for bankruptcy.

The company has reportedly hired restructuring experts, which has sparked rumors that a Chapter 11 filing could be close, reports. Bloomberg.

If Red Lobster decides to file for bankruptcy, it could reorganize its operations, which could include eliminating expensive leases and reducing labor costs.

Last year, the company reported an $11 million loss in the third quarter, which was largely attributed to its unlimited shrimp business.

The $20 “Unlimited Infinity Shrimp” became a fan favorite, but turned out to be a “key factor” in the financial losses.

Thai Union Group is a seafood producer that owns 49% of the chain but has been actively trying to sell its stake.

The group said its decision was based on the impact on profits from the “pandemic, sustained industry headwinds, higher interest rates and rising materials and labor costs.”

He added that Red Lobster’s financial problems are “no longer aligned with your company.”

Thai Union Group CFO Ludovic Regis Henri Garnier said the price of the unlimited shrimp deal was too low for its popularity.

“We knew the price was cheap, but the idea was to attract more traffic to the restaurants,” Garnier told investors, reports. Restaurant business.

Red Lobster had a similar problem in 2003 when it launched the Endless Crab business, which resulted in it losing $405.9 million in shares in one trading session and $3.3 million in profits.

RED LOBSTER CLOSED LOCATIONS

The following Red Lobster locations are now listed as closed

Alabama:

• Huntsville
• Decatur
• Mobile

Arizona:

California:

• Fremont
• Montclair
• Rohnert Park
• sacrament
• San Diego
• Torrance

Colorado:

• Lakewood
• Lonely tree
• Wheat Ridge
• Denver

Florida:

• Two locations in Tampa
• wide
• Kissimmee
• Leesburg
• Three Orlando locations, including Golden Sky Lane
• Altamonte Springs
• Gainesville
• Three Jacksonville locations, including Commerce Center Drive
• sanford
• Coastlines of Daytona Beach

Georgia:

Idaho:

Illinois:

Indiana:

Iowa:

Kansas:

Louisiana:

Maryland:

• Colombia
• blonde
• Silver Spring
• Gaithersburg]

Mississippi:

Missouri:

New Jersey:

• Lug wood
• Lawrenceville
• East Brunswick
• Bridgewater

New York:

• Lakewood
• Buffalo
• Amherst
• Williamsville
• Rochester
• Poughkeepsie
• Stony stream
• Kingston
• Scarsdale
• Nanuete

North Caroline:

• Rocky Mountain
• Cary
• Durham
• Burlington

North Dakota:

Oklahoma:

• Oklahoma City
• Still water
• Lawton

Pennsylvania:

South Carolina:

Tennessee:

• Memphis
• Two locations in Dallas
• Lake Jackson
• Houston
• Pasadena
• Tyler
• Long term vision
• Lufkin

Virginia:

• Newport News
• Williamsburg
• Colonial Hills

Washington:

Wisconsin:

LEFT IN THE DARK

Some Red Lobster employees spoke out on social media, saying they were not notified about store closures.

“I lost my job today without warning and yesterday I worked on Mother’s Day,” wrote one of them in a publish on X, formerly known as Twitter.

“I’m one of the lucky ones who doesn’t have children or a house to pay for. It’s terrible to leave all those employees with nothing, no notice, nothing,” said another.

Around 6,500 employees were affected as more than 80 locations were listed as “temporarily closed”.

A restaurant in Bossier City, Louisiana, hung a sign on the door simply saying, “This location is closed.”

The US Sun reached out to Red Lobster for more information.

Several industries have been affected by closures in recent years.

Family Dollar announced it would close 1,000 stores, leaving customers asking, “Where will we shop?”

Plus, a beloved card shop is closing after 37 years, citing exorbitant costs.

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