Red Lobster, which recently filed for bankruptcy, is now planning to shut down multiple locations across the United States. This includes four additional sites in Georgia.
According to a recent announcement, the world’s largest seafood chain, currently burdened with over $1 billion in debt, has decided to sell its business to its lenders.
According to analysts, recent financial issues can be attributed to mismanagement, competition, and inflation.
According to court documents, Red Lobster plans to close dozens of additional locations, as CNN has reported. The restaurant chain has already shut down numerous locations throughout metro Atlanta.
In 1968, Red Lobster was established and had a presence in around 650 restaurants across the United States and other countries.
According to ABC News, Red Lobster faced a significant financial setback last year, with losses of $11 million in the third quarter alone. This was attributed to the introduction of the endless shrimp deal, which was added to the permanent menu. The losses continued into the fourth quarter of 2023, with Red Lobster reporting $12.5 million in losses.
Assuming the plan gets the court’s approval, the following locations in Georgia will cease operations:
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- 2679 Adams Farm Dr., Columbus
- 6550 Tara Blvd, Jonesboro
- 700 Shorter Ave., Rome
- 2579 Cobb Parkway, Smyrna