Red Lobster Announces, Nearly 100 Locations , Will Be Shut Down.<br />NBC reports that approximately 99 Red Lobster locations <br />will be auctioned off as the seafood chain faces <br />questions regarding the company's long-term future.<br />Founder and CEO of the liquidation firm TAGeX Brands, <br />Neal Sherman, said he would lead the closure of over <br />50 locations in a May 13 LinkedIn post.<br />Sherman said equipment from the <br />locations will be auctioned off.<br />Locations will reportedly be closed across <br />the United States, including Denver, <br />Indianapolis, California and New York.<br />On May 14, Restaurant Business Magazine reported <br />a total of 99 locations would close, representing <br />about 15% of the company's 700 locations. .<br />NBC reports that the largest seafood <br />restaurant in the U.S. has struggled with debt, <br />unfavorable leases and executive turnover.<br />The chain's troubles also stem from ill-advised <br />strategies like an all-you-can-eat-shrimp promotion <br />in 2023 that resulted in a significant loss.<br />Earlier in 2024, the chain's largest investor, <br />Thai Union, announced that it would <br />seek to exit its position. .<br />The combination of Covid-19 pandemic, <br />sustained industry headwinds, higher <br />interest rates and rising material and <br />labor costs have impacted Red Lobster, <br />resulting in prolonged negative <br />financial contributions to <br />Thai Union and its shareholders, Thiraphong Chansiri, Thai Union Group’s CEO, via NBC.<br />After detailed analysis, we have <br />determined that Red Lobster’s <br />ongoing financial requirements <br />no longer align with our capital <br />allocation priorities and <br />therefore are pursuing an exit <br />of our minority investment, Thiraphong Chansiri, Thai Union Group’s CEO, via NBC
