There have been plenty of headlines recently that Red Lobster is facing bankruptcy, and it seems like the company has taken a drastic measure to fight it off. The casual dining restaurant chain abruptly closed dozens of locations, suddenly shuttering over 50 restaurants without notice. While the affected locations show "temporarily closed" online, all the contents of those restaurants are going up for auction.
Liquidation company TAGeX Brands is currently auctioning off all kitchen equipment, tables, chairs and more from the restaurants. One of those restaurants, in Grand Forks, North Dakota, didn't open on Monday and is still listed as temporarily closed, however a note on the restaurant's door reads, "This location is closed. We look forward to serving you at another Red Lobster location in the future."
Red Lobster has reportedly been considering bankruptcy following financial struggles that stem from their highly popular all-you-can-eat shrimp promotion, Ultimate Endless Shrimp, which they recently made available all the time for $20 and not just as a limited-time special. So many customers took them up on the offer that they lost $12.5 million.
Due to that and other issues, minority investor, Thai Union Group, decided to sell their stake in the chain, cutting their losses. In an earnings call, their CEO was straightforward about the decision, stating, "After detailed analysis, the board of directors has determined that Red Lobster's ongoing financial requirements no longer align with our capital allocation priorities and therefore the company is pursuing an exit of the minority investment... We’re not expecting to get anything much from the sale."
The closures mark one of the only times the company has closed this many stores at once in its 50-year history. Here is a full list of the restaurants that have closed and are included in the auction:
Alabama
- Auburn
- Decatur
California
- Redding
- Rohnert Park
- Sacramento
- San Diego
- Torrance
Colorado
- Denver
- Lakewood
- Lone Tree
- Wheat Ridge
Florida
- Altamonte Springs
- Gainseville
- Hialeah
- Largo
- Orlando
Georgia
- Athens
- Roswell
- Dublin
Idaho
- Lewiston
Illinois
- Bloomingdale
- Danville
Indiana
- Indianapolis
- Elkhart
Iowa
- Council Bluffs
- Waterloo
Maryland
- Gaithersburg
- Columbia
- Silver Spring
- Laurel
Michigan
- Fort Gratiot
Mississippi
- D'lberville
New York
- Amherst
- Kingston
- Rochester
New Jersey
- Ledgewood
North Dakota
- Grand Forks
Oklahoma
- Lawton
South Carolina
- Myrtle Beach
Texas
- Lake Jackson
- Longview
- San Antonio
Virginia
- Colonial Heights
- Williamsburg
- Newport News
Washington
- Silverdale
Wisconsin
- Wauwatosa
- La Crosse