Red Lobster Faces Financial Struggles As 23 Restaurants Close
Red Lobster's Ongoing Bankruptcy Challenges
Red Lobster is in the process of closing 23 additional restaurants amid its ongoing bankruptcy proceedings. This closure will contribute to the staggering number of more than 100 restaurants shut down earlier this summer, resulting in the company having around 500 locations remaining from 650 just a year ago.
Reasons Behind the Closures
- Mismanagement has plagued Red Lobster in recent years.
- Intense market competition has further strained operations.
- Rising inflation has impacted consumer spending in dining.
During these difficult times, Fortress Credit Corp. has stepped in with a $100 million loan to help Red Lobster stay afloat. As part of their recovery strategy, the former CEO of P.F. Chang's, Damola Adamolekun, is set to lead Red Lobster post-bankruptcy.
Locations Slated for Closure
- Arizona - 1521 S. Yuma Palms Pkwy., Yuma
- Arkansas - 8407 W. Markham St., Little Rock
- California - 8703 Murray Drive, La Mesa
- Colorado - 4925 N. Academy Blvd., Colorado Springs
- Florida - 326 Miracle Strip Pkwy., Fort Walton Beach
- Florida - 5110 N. 9th Ave., Pensacola
- Florida - 8909 U.S. Highway 19, Port Richey
- Georgia - 6550 Tara Blvd., Jonesboro
- Illinois - 1604 N. State Road 50, Bourbonnais
- Illinois - 902 Commons Drive, Geneva
- Illinois - 4625 N. Sterling Ave., Peoria
- Indiana - 4353 Franklin St., Michigan City
- Minnesota - 8900 Golden Valley Road, Golden Valley
- Minnesota - 12515 Elm Creek Blvd. North, Maple Grove
- Missouri - 2381 Maplewood Commons Drive, Maplewood
- New York - 925 Hunts Point Ave., Bronx
- New York - 750 Upper Glen St., Queensbury
- North Carolina - 304 A Western Blvd., Jacksonville
- Ohio - 17227 Southpark Center, Strongsville
- South Carolina - 1270 Knox Abbott Drive, Cayce
- Virginia - 555 S. Van Dorn St., Alexandria
- Virginia - 4415 S. Laburnum Ave., Richmond
- Virginia - 709 Independence Blvd., Virginia Beach
With these closures, Red Lobster aims to reduce operational costs and recover from instability caused by a previously toxic corporate culture under prior ownership by Thai Union.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.