Bidenomics Strikes Again: Red Lobster Closes Nearly “120 Restaurants” in 27 States — Plans to File Bankruptcy in the Coming Weeks
Popular seafood chain Red Lobster has begun the process of closing nearly 127 locations in 27 states, according to reports.
The post Bidenomics Strikes Again: Red Lobster Closes Nearly “120 Restaurants” in 27 States — Plans to File Bankruptcy in the Coming Weeks appeared first on The Gateway Pundit.
Popular seafood chain Red Lobster has begun the process of closing nearly 127 locations in 27 states, according to reports.
As of Tuesday, the Red Lobster website listed the affected locations as “closed,” according to a report by Fox 59. States including California, Florida, New York, Iowa, and Illinois were among those hit by the unexpected closures.
In Danville, Illinois, Mayor Rickey Williams Jr. took to Facebook to express his dismay.
“I was just notified by one of our local Red Lobster managers that after 31 years of serving our community, without notice, their parent company laid off the entire crew and closed the restaurant effective immediately,” Williams wrote.
“This is despite the fact that they were rated number 15 out of over 600 stores for customer service & satisfaction last year. They also shuttered nearly 120 other stores without notice,” Williams added.
The parent company’s abrupt decision to shutter these locations comes as it prepares to auction off more than 50 sites across the country. TageX Brands, a restaurant liquidation company, has announced that it will oversee the sale of equipment from the closed restaurants, describing it as its “largest restaurant equipment auction ever.” However, only 48 locations are specifically listed in its catalog, Fox Business reported.
“As of today, select Red Lobster locations are CLOSED. On our Restaurant Equipment marketplace, we are auctioning off 50+ locations across the country. These auctions are WINNER TAKES ALL – meaning, each winner will receive the ENTIRE contents of the Red Lobster location they bid on. Auctions are live and will end periodically on Thursday, May 16, 2024,” TageX wrote on its website.
The locations participating in this massive auction span across several states. The auction includes locations in the following states:
Alabama
- Auburn
- Decatur
California
- Redding
- Rohnert Park
- Sacramento
- San Diego
- Torrance
Colorado
- Denver
- Lakewood
- Lone Tree
- Wheat Ridge
Florida
- Altamonte Springs
- Gainesville
- Hialeah
- Largo
- Orlando
Georgia
- Athens
- Roswell
- Dublin
Idaho
- Lewiston
Illinois
- Bloomingdale
- Danville
Indiana
- Indianapolis
- Elkhart
Iowa
- Council Bluffs
- Waterloo
Maryland
- Gaithersburg
- Columbia
- Silver Spring
- Laurel
Michigan
- Fort Gratiot
Mississippi
- D’Iberville
New York
- Amherst
- Kingston
- Rochester
New Jersey
- Ledgewood
North Dakota
- Grand Forks
Oklahoma
- Lawton
South Carolina
- Myrtle Beach
Texas
- Lake Jackson
- Longview
- San Antonio
Virginia
- Colonial Heights
- Williamsburg
- Newport News
Washington
- Silverdale
Wisconsin
- Wauwatosa
- La Crosse
Earlier this year, Red Lobster’s owner, Thai Union Group, announced plans to sell its stake in the brand, citing a “combination of [the] COVID-19 pandemic, sustained industry headwinds, higher interest rates, and rising material and labor costs” impacting profits.
Earlier this year, rumors surfaced that Red Lobster was considering filing for bankruptcy to alleviate its financial burdens.
Business Insider reported:
Restaurant chain Red Lobster could file for bankruptcy protection as early as next week, The Wall Street Journal reported on Tuesday.
People familiar with the matter told the Journal that the company, overwhelmed with hundreds of millions in debt, plans to file a Chapter 11 bankruptcy petition in Orlando before Memorial Day.
Bloomberg previously reported in April that the restaurant company was considering filing for Chapter 11 bankruptcy protection.
[…]
Leasing costs, less foot traffic during COVID-19 lockdowns, and a failed all-you-can-eat shrimp promotion are some of the reasons Red Lobster and outside observers have attributed to the company’s downfall.
These financial troubles resulted in Thai Union Group, which had assumed majority ownership of Red Lobster in 2020, pulling out its investments. On a February earnings call, Thai Union Chief Executive Thiraphong Chansiri said, “We’re going to exit. We are not going to inject any more money into Red Lobster.”
The sudden closure of Red Lobster locations is yet another indicator of the economic hardships facing American businesses under the Biden regime. As inflation and costs continue to rise, more and more companies are finding it difficult to stay afloat.
The question remains: how many more businesses will fall victim to these economic conditions before Trump gets reelected this coming November?
The post Bidenomics Strikes Again: Red Lobster Closes Nearly “120 Restaurants” in 27 States — Plans to File Bankruptcy in the Coming Weeks appeared first on The Gateway Pundit.