Online Auction Kicks Off
Starting Monday, TAGeX Brands opened an online auction for kitchen equipment, furniture, and other items from the closing Red Lobster restaurants. This auction will run through Thursday.
Source: Red Lobster/Facebook
TAGeX Brands shared, “Auctions start NOW. SINGLE winner for each location. WINNER TAKES ALL.”
Red Lobster's Financial Woes
Red Lobster has been struggling for years, facing declining sales and profits. Restaurant Business reported a loss of over $11 million in the third quarter of 2023.
Source: Wikimedia Commons
The loss followed their decision to permanently offer the “Ultimate Endless Shrimp” for $20 on the regular menu, which didn’t pay off.
Parent Company Bails Out
Things got worse when Thai Union Group, Red Lobster’s parent company, decided to divest.
Source: Red Lobster/Facebook
The seafood chain’s problems deepened, as Thai Union announced they would pull out after losing millions.
Bankruptcy on the Horizon?
Bloomberg reported that Red Lobster is considering filing for Chapter 11 bankruptcy.
Source: Wikimedia Commons
This move could help them renegotiate property leases and manage labor costs.
650 Locations in Limbo
Red Lobster operates about 650 locations across the U.S., but many now show as “temporarily closed” on their website. This includes places like Buffalo, New York; Elkhart, Indiana; and even their hometown, Orlando, Florida.
Source: Wikimedia Commons
These sudden closures have left communities and employees in shock.
Danville, Illinois Hit Hard
Danville Mayor Rickey Williams Jr. shared on Facebook about the local Red Lobster’s sudden closure after 31 years.
Source: Red Lobster/Facebook
He wrote, “Their parent company laid off the entire crew and closed the restaurant effective immediately. To our local Red Lobster family, THANK YOU for serving us so well & being the place we all went to for special occasions. Our prayers are with you and we’re here to help in any way we can.”
Employees Blindsided
Employees were caught off guard by these closures.
Source: Wikimedia Commons
An alleged employee, @haileyreneeee, posted on X, “I lost my job today without warning and working Mother’s Day yesterday.”
6,500 Jobs Potentially Lost
Newsweek reports that economic intelligence company MacroEdge reported that around 6,500 Red Lobster employees might be impacted by these closures.
Source: Wikimedia Commons
However, these numbers haven’t been confirmed.
Auction Frenzy
The auction of Red Lobster’s equipment and furniture has sparked significant interest.
Source: Red Lobster/Facebook
TAGeX Brands’ Neal Sherman said, “Four sales were completed on Monday.”
Community Outcry
Communities across the U.S. are reacting to the closures.
Source: Wikimedia Commons
Many locals are disappointed and concerned about the sudden loss of their favorite seafood spots.
The Future of Red Lobster
As Red Lobster navigates these closures and potential bankruptcy, its future remains uncertain. The outcomes of the auctions and bankruptcy decisions will be crucial.
Source: Red Lobster/Facebook
For now, fans and employees are left wondering what’s next for this iconic seafood chain.