Is your local red lobster on the latest closing list? At least 99 locations of the stalwart seafood chain are being auctioned off, raising questions about its long-term viability.
The closures cover restaurants throughout Texas, including two in the Dallas area: 10290 E. Technology Blvd. and 9069 Vantage Point Dr. Other closures in Texas include three in the greater Houston area (North Houston, Pasadena, and Lake Jackson,), as well as one in San Antonio.
Neal Sherman, founder and CEO of TAGeX Brands, announced on LinkedIn that he is leading the closure of over 50 Red Lobster locations, with their equipment to be auctioned off. A dedicated webpage for these liquidations lists closure locations across the U.S., including Denver, Indianapolis, Rochester, Sacramento, San Antonio, and San Diego. According to Restaurant Business Magazine, 99 locations are set to close.
These closures represent approximately 15% of Red Lobster’s 700 locations, though it remains the largest seafood restaurant chain in the U.S. The company has been struggling with significant debt, unfavorable lease terms, executive turnover, and strategic missteps, including a costly all-you-can-eat-shrimp promotion last fall. Last month, CNBC reported that Red Lobster was seeking a buyer to avoid bankruptcy, but no buyer has emerged.
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3wThank you everyone for the congrats. I am really just supported by my amazing wife and team that makes this possible. My job is to continue motivating them. It is such an honor to be recognized by the industry I love and have devoted my professional career to.