Photo: Bloomberg
Red Lobster abruptly closed 50 locations across the country amid bankruptcy allegations and recently announced select store liquidation.
According to a Linked In post shared by liquidation company TAGeX Brands' CEO and founder Neal Sherman, the popular casual dining restaurant unexpectedly closed locations across 21 states, standing out as the "largest restaurant liquidation" in the company's history. Red Lobster kitchen equipment, tables, and chairs are currently being auctioned off in a "winner takes all" style bidding war. Per TAGeX Brands, each winner will receive the entire contents of the Red Lobster location that they bid on.
"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."
Select locations across Michigan including those in Fort Gratiot are closing their doors and have already begun the liquidation process. Red Lobster hired a new CEO in March in an effort to restructure the restaurant chain amid exploring bankruptcy filing. FoodServiceResults CEO Darrent Tristano told SeaFoodSource that Red Lobster is currently an aimless "zombie brand."
"It appears that Red Lobster is planning for a turnaround, bankruptcy or fire sale. Because Red Lobster has not yet named a new buyer, it would appear that bankruptcy would be the best option followed by a sale after the balance sheet gets cleaned up."
For more information regarding the sudden closures, check out: "Huge Restaurant Chain Abruptly Closes Over 50 Locations Across US".