Eyeing Chapter 11: Once popular Red Lobster to shut 48 locations and auction off restaurant equipment


Important Takeaways:

  • The full list of Red Lobster locations that were closed overnight has been revealed.
  • The 48 shuttered restaurants will have their contents, including kitchen equipment and furniture, auctioned off on Thursday.
  • Closures were announced across 21 states on Monday night, effective immediate
  • Florida and California have seen the most closures, followed by Colorado and Maryland.
  • The auctions will be run by Restaurant Equipment Bid. They specialize in selling off gear from restaurants that close down and need to liquidate quickly.
  • Red Lobster items available vary by location but include the likes of high-performance ovens, upright refrigerators and freezers, cooking and warming gear, as well as ‘comprehensive bar and dining setups’, according to the auction site.
  • The struggling chain is eyeing up a possible Chapter 11 filing to restructure its debt, allowing it to discard long-term contracts and renegotiate new leases.
  • The abrupt closures come after the company last year reported record losses of $11 million, which its CFO partly blamed on its unlimited shrimp deal.
  • The chain, which started as a single restaurant in Lakeland, Florida, in 1968 has around 650 locations across almost all states. It’s famous for its cheese-flavored biscuits.

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