Red Lobster closing more than 50 locations as future of longtime seafood chain comes into question

Much more than 50 places of Crimson Lobster are getting auctioned off amid issues about the stalwart seafood chain’s long-expression future.

In a submit Monday on LinkedIn, Neal Sherman, founder and CEO of TAGeX Makes, a liquidation firm, introduced he was primary the closure of far more than 50 Purple Lobster areas, with the restaurants’ tools to be auctioned off.

A internet webpage focused to the liquidations showed closure areas throughout the U.S. together with in Denver, Indianapolis, Rochester, New York Sacramento, San Antonio, and San Diego.

The closures depict just a portion of Crimson Lobster’s close to 700 places, and the firm stays the largest seafood cafe chain in the U.S.

But it proceeds to battle amid a sizeable debt load, unfavorable lease conditions, executive turnover, and ill-recommended strategies which includes an all-you-can-eat-shrimp marketing past drop that resulted in a substantial loss for the organization.

Very last month, CNBC described Pink Lobster was seeking a consumer as it seemed to steer clear of a bankruptcy filing, but none experienced nevertheless materialized at the time.

Earlier this year, Thai Union, the biggest trader in Purple Lobster, declared it was trying to get to exit its place.

“The mix of Covid-19 pandemic, sustained market headwinds, better curiosity premiums and increasing materials and labor expenditures have impacted Red Lobster, resulting in prolonged destructive fiscal contributions to Thai Union and its shareholders,” mentioned Thiraphong Chansiri, Thai Union Group’s CEO in a assertion.

“After in depth assessment, we have determined that Pink Lobster’s ongoing money needs no more time align with our cash allocation priorities and therefore are pursuing an exit of our minority expense.”

Crimson Lobster did not right away react to a request for comment.