So long, Cheddar Bay Biscuits. Many Red Lobster locations are closed across the country, including more than a dozen in Florida.
Signs on the door of some Red Lobster locations with empty parking lots, including the one in Leesburg and others around the country on Monday said, “This location is closed. We look forward to serving you at another Red Lobster in the future.”
Several national media outlets, including The Hill, reported that at least 48 Red Lobster restaurants were closed. The closures are also in seven states other than Florida.
TAGeX Brands, a company that helps firms with closures and liquidations, announced on its website that it would be auctioning off equipment this week from more than 50 Red Lobster restaurants, including five in Florida: Altamonte Springs, Gainesville, Hialeah, Largo and Orlando. The company page is titled “THE LARGEST RESTAiURANT EQUIPMENT AUCTION EVER.”
Red Lobster, the once popular seafood restaurant that started in Lakeland, Florida, in the late 1960s, was considering a Chapter 11 bankruptcy filing, according to multiple news sources.
In an April 2024 Bloomberg report citing sources familiar with the discussions, the seafood chain was considering a bankruptcy filing to renegotiate burdensome leases and address other long-term contracts, as well as rising labor costs.
What does this mean for the popular restaurant chain and its Florida locations? Here’s what we know.
Why was Red Lobster considering bankruptcy?
According to Bloomberg, Red Lobster has been finding it difficult to make money with its current leases and labor costs. It has also been reported by CNN the company suffered $12.5 million operating loss in the fourth quarter of 2023, despite its popular endless shrimp promotion.
By filing for Chapter 11 bankruptcy, the company would stay open while it reorganizes funds to pay off existing debt over time, seeking to continue with better financial footing.
Bloomberg also reported Red Lobster is being advised by law firm King & Spalding on the subject. Any discussions about restructuring are ongoing and no final decisions have been made about a bankruptcy filing as of April 18.
An email to a Red Lobster media inquiries address went unanswered late Monday afternoon.
Who founded Red Lobster? Seafood restaurant chain started in Florida
Red Lobster was founded in 1968 in Lakeland, Florida, by Bill Darden and Charley Woodsby.
General Mills acquired the company in 1970 and helped it expand into North America, before establishing a new company for its restaurant brands called Darden Restaurants Inc. in 1995. Darden also owned the Italian restaurant chain, Olive Garden.
Almost 20 years later, Darden Restaurants sold Red Lobster to Golden Gate Capital in 2014. Thai Union, which previously had a one-fourth stake in the company, bought out Golden Gate’s stake in the company in 2021.
This year, Thai Union Group revealed that it intended to exit its minority investment in Red Lobster.
“The combination of Covid-19 pandemic, sustained industry headwinds, higher interest rates and rising material and labor costs have impacted Red Lobster, resulting in prolonged negative financial contributions to Thai Union and its shareholders,” Thiraphong Chansiri, Thai Union Group’s CEO, said in a news release.
Red Lobster brought in Jonathan Tibus as its new CEO recently, according to Fox Business.
How many Red Lobster restaurants in Florida closed?
As of May 13, 2024, Red Lobster listed more than 60 restaurant locations in 49 Florida cities on its website. Each has a page listing a local restaurant’s hours. A search of the Red Lobster website had locations in these cities listed as “Closed” under its hours for all days of the week:
- Jacksonville: All 3
- Daytona Beach Shores
- Gainesville
- Hialeah
- Jensen Beach
- Kissimmee: 1 of 3, (4010 W. Vine St., Kissimmee)
- Largo
- Leesburg
- Orlando: 3 of 6, (5936 International Drive, Orlando; 3552 E. Colonial Drive, Orlando; 617 N. Alafaya Trail, Orlando)
- Sanford
- Tampa: 2 of 3 (6161 34th St. North, St. Petersburg; 11601 N. Dale Mabry, Tampa)
As of May 13, 2024, many restaurant locations in Florida still appear open on Red Lobster’s website
First appeared on www.news-journalonline.com