FOLLOWING its bankruptcy filing, Red Lobster announced it will likely close six more locations.
Restaurants are at risk of closing if the court approves the plan.
Four Red Lobsters in Georgia and two in South Carolina face possible closures.
According to its recent bankruptcy filing, the seafood chain is undergoing a corporate restructuring.
Red Lobster has plans to reject leases for more than 120 locations in dozens of states, local CBS affiliate reported WRDW.
Approximately 50 restaurants have already closed their doors in the US.
As financial difficulties weighed on the company, it became very difficult for Red Lobster to maintain these locations.
Last month, the company revealed that it had more than a billion dollars in debt.
The number of restaurants it plans to close continues to change, with new plans being released weekly.
Locations in Georgia that may close are:
- 2679 Adams Farm Dr, Columbus
- 6550 Tara Blvd., Jonesboro
- 700 Shorter Ave., Rome
- 2579 Cobb Parkway, Izmir
Meanwhile, South Carolina could lose the other two:
- 1270 Knox Abbott Dr, Cayce
- 2080 Sam Rittenburg Blvd., Charleston
Red Lobster currently operates 570 locations nationwide.
As for the future, the restaurant chain plans to sell its business to its creditors to receive financing so it can stay open.
JUMPING FROM THE SHIP
Thailand-based seafood producer Thai Union Group announced its plans to divest from the chain last January due to “prolonged negative financial contributions.”
This comes after the company ran its Ultimate Endless Shrimp promotion last year, allowing customers to order all they could eat for just $20.
Red Lobster Locations Closing
The following states have Red Lobster locations closing their doors:
- Alabama
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Maryland
- Michigan
- Minnesota
- Mississippi
- Missouri
- New Jersey
- new York
- North Caroline
- Ohio
- Pennsylvania
- South Carolina
- Tennessee
- Texas
- Virginia
- washington
- West Virginia
- Wyoming
*via local NBC affiliate WGRZ.
After Thai Union Group had to increase the price to $25 due to increased demand, things got worse.
With the offer eventually becoming very popular, Red Lobster saw a company-wide loss of $11 million dollars.
It was then that the Thai Union Group sought to move away from the chain.
At the time, the Thailand-based food producer recorded a non-monetary loss of value of US$530 million in the fourth quarter of 2023.
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This story originally appeared on The-sun.com read the full story
