Redding Red Lobster among locations closed. Restaurant had been open 30-plus years

In the wake of reported financial struggles, Red Lobster has closed its Redding location after more than 30 years in business.

The restaurant opened in 1991 just off the interchange connecting Highway 44 and Dana Drive in east Redding.

According to a story in USA TODAY, a liquidator announced on Monday that it is auctioning off equipment from 48 Red Lobster locations across the country.

Redding is among five locations in California that are part of the online auction. The others are Rohnert Park, Sacramento, San Diego and Torrance.

TAGeX Brands is holding the auction.

“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 TAKE ALL. … Auctions are live and will end periodically on Thursday, May 16, 2024,” the auction site states.

While the USA TODAY story did not list Redding among the locations in California closing, a manager at the restaurant confirmed to the Record Searchlight that the restaurant closed Monday.

She referred further questions to a company spokesperson in Orlando, Florida. The spokesperson did not immediately return a phone message seeking comment.

The USA TODAY story said the seafood chain recently considered filing for Chapter 11 bankruptcy.

“The company had been getting advice from law firm King & Spalding as it looked to shed some long-term contracts and renegotiate leases, Bloomberg reported, noting that Red Lobster's cash flows had been weighed down by leases and labor costs, among other issues,” the story stated.

Red Lobster was part of a boom of retail and restaurants that opened along Dana Drive in the late 1980s and 1990s as Redding’s retail landscape grew.

Establishments included Costco Wholesale, Target, Walmart, Red Robin, Jack in the Box, Olive Garden and In-N-Out Burger.

Costco and Jack in the Box have since closed.

Costco relocated to south Redding and the vacant Jack in the Box building was demolished to make room for Quick Quack Car Wash.

David Benda covers business, development and anything else that comes up for the USA TODAY Network in Redding. He also writes the weekly "Buzz on the Street" column. He’s part of a team of dedicated reporters that investigate wrongdoing, cover breaking news and tell other stories about your community. Reach him on X, formerly Twitter @DavidBenda_RS or by phone at 530-338-8323. To support and sustain this work, please subscribe today.