Map Shows Red Lobster Closing 23 More Locations

Red Lobster, the once-thriving seafood restaurant chain, is set to close an additional 23 locations across the United States by August 31, according to a recent court filing amid the company’s ongoing bankruptcy proceedings.

The new round of closures span 15 states, with Florida, Illinois and Virginia each losing three locations. Other affected states include Arizona, Arkansas, California, Colorado, Georgia, Indiana, Minnesota, Missouri, New York, North Carolina, Ohio, and South Carolina. This move follows the closure of over 100 Red Lobster locations earlier this summer, bringing the total number of restaurants operating down to approximately 500—a stark contrast to the 650 locations that were open last year.

The decision to close these specific restaurants was detailed in a court filing from last week, which stated that the identified locations “are likely to continue to drive losses” and are not considered necessary for the company’s future operations. This strategic downsizing is part of Red Lobster’s efforts to streamline its operations and regain financial stability amid challenging market conditions.

Newsweek has contacted Red Lobster via email on Monday for comment.

Red Lobster’s troubles can be traced back to a combination of factors, including mismanagement, intense competition in the casual dining sector, and the impacts of inflation on operational costs and consumer spending habits. The company’s decline has been particularly pronounced since 2020 when Thai Union, a global seafood supplier, became its leading shareholder.

Under Thai Union’s stewardship, former leaders told CNN earlier this year that Red Lobster’s corporate culture took a turn for the worse. Cost-cutting measures, including the removal of longtime suppliers, and ill-fated promotional strategies contributed to the chain’s financial woes. One notable misstep was the decision to make the “$20 Endless Shrimp” offer a permanent menu item, which reportedly resulted in an $11 million loss for the company.

As Red Lobster navigates through its bankruptcy, it is in the process of being sold to Fortress Credit Corp., a lender with extensive experience in restaurant management. Fortress, which also owns other restaurant chains such as Krystal, Logan’s Roadhouse, and J. Alexander’s, has provided Red Lobster with a $100 million loan to maintain operations during this transition period.

In a move that signals a potential turnaround, Fortress announced on Monday that it plans to install Damola Adamolekun as Red Lobster’s new CEO once the chain emerges from bankruptcy. Adamolekun previously served as the chief executive of P.F. Chang’s for four years until August 2023.

Below are the latest locations that Red Lobster plans to close:

Arizona

• 1521 S. Yuma Palms Pkwy., Yuma

Arkansas

• 8407 W. Markham St., Little Rock

California

• 8703 Murray Drive, La Mesa

Colorado

• 4925 N. Academy Blvd., Colorado Springs

Florida

• 326 Miracle Strip Pkwy., Fort Walton Beach
• 5110 N. 9th Ave., Pensacola
• 8909 U.S. Highway 19, Port Richey

Georgia

• 6550 Tara Blvd., Jonesboro

Illinois

• 1604 N. State Road 50, Bourbonnais
• 902 Commons Drive, Geneva
• 4625 N. Sterling Ave., Peoria

Indiana

• 4353 Franklin St., Michigan City

Minnesota

• 8900 Golden Valley Road, Golden Valley
• 12515 Elm Creek Blvd. North, Maple Grove

Missouri

• 2381 Maplewood Commons Drive, Maplewood

New York

• 925 Hunts Point Ave., Bronx
• 750 Upper Glen St., Queensbury

North Carolina

• 304 A Western Blvd., Jacksonville

Ohio

• 17227 Southpark Center, Strongsville

South Carolina

• 1270 Knox Abbott Drive, Cayce

Virginia

• 555 S. Van Dorn St., Alexandria
• 4415 S. Laburnum Ave., Richmond
• 709 Independence Blvd., Virginia Beach