Red Lobster closes dozens of restaurants. Is the Visalia location next?

Visalia Times-Delta

• Red Lobster officials shuttered dozens of restaurants Monday as the seafood chain reportedly considers a bankruptcy filing.
• The Visalia Red Lobster on Mooney Boulevard remains open.
• Equipment from more than 50 Red Lobsters stores in 21 states began being auctioned off on Monday.

With financially struggling Red Lobster closing restaurants across the country, fans of the seafood eatery are wondering if the Visalia location is on a future chopping block.

Red Lobster officials shuttered dozens of restaurants Monday as the seafood chain reportedly considers a bankruptcy filing, Restaurant Business reported.

Over 80 Red Lobster sites in at least 27 states were listed as "temporarily closed" on the company's website, ABC 10 reported.

Meanwhile, the Red Lobster on Mooney Boulevard in Visalia remains open.

There are nearly 50 Red Lobsters locations in California and more than 700 worldwide, according to the company.

Store closures, equipment auction

Social media reports indicated that the closures were sudden and unexpected, with employees showing up to work only to find out they no longer had a job, according to Restaurant Business.

Equipment from more than 50 Red Lobsters stores in 21 states began being auctioned off on Monday by RestaurantEquipment.bid, which said:

“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.”

Some of the equipment auctions were for Red Lobster stores in California, including locations in Torrance, San Diego, Sacramento, Redding and Rohnert Park.

Financial struggles

For years, the Red Lobster chain has struggled with sales and profit declines. The situation reached a boiling point last year as the chain bled money, prompting minority owner Thai Union Group to abandon a turnaround effort and divest from the company, according to Restaurant Business.

In March, Red Lobster hired restructuring expert Jonathan Tibus as CEO, its fourth in three years. And last month, Bloomberg reported that it was considering a bankruptcy filing to restructure its debt.

In 2021 and 2022, Red Lobster saw a new CEO, chief marketing officer, chief financial officer and chief information officer join the “C-Suite” level. All of them left within two years, according to CNN.

Last summer, Red Lobster revived its endless shrimp menu deal, which led to a $11 million loss for the company, CNN reported.

Red Lobster's top supplier, Thai Union, recently cut ties with the seafood restaurant.

Daily Press reporter Rene Ray De La Cruz may be reached at RDeLaCruz@VVDailyPress.com. Follow him on X @DP_ReneDeLaCruz

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