Restaurant chain Red Lobster appears to be the latest beneficiary of “Bidenomics”, with reports surfacing this week that “dozens” of its locations across the country are unexpectedly closing down.
More than 80 locations in at least 27 states have now been listed as “temporarily closed” on the restaurant chain’s website, according to CBS affiliate WBNS.
The report said that workers at the locations were offered “no notice whatsoever” as to the closings. The Orlando-based seafood chain known for its endless shrimp deals has been struggling with significant internal and financial challenges, the report says.
Recently, the company faced rumors of bankruptcy as it sought a buyer to avoid filing for Chapter 11, with multiple media outlets reporting the potential filing last month.
It was reported that it might file for bankruptcy to restructure its debt and reduce its 650 US locations.
The chain underwent considerable leadership changes in 2021 and 2022, with new appointees in several top positions including CEO, chief marketing officer, chief financial officer, and chief information officer, all of whom departed within two years – usually not a sign things are moving in the right direction.
Last summer, the company reintroduced its endless shrimp menu deal, which resulted in an $11 million loss.
Even more devastating, CBS reports that Thai Union, Red Lobster’s top supplier, has severed ties with the chain.
A liquidation company has started an online auction for kitchen equipment and other contents from the closed Red Lobster locations, the report adds.
Amid these developments, the company has not publicly commented on the recent closures of several locations nor responded to inquiries about them.
Tyler Durden
Tue, 05/14/2024 – 08:55
