Red Lobster is shuttering more than 50 locations throughout the U.S., according to an auction notice from a liquidation firm, further cementing the seafood restaurant chain’s struggles as it reportedly considers bankruptcy fueled by a large debt load, executive turnover and losses that weren’t helped by a problematic all-you-can-eat shrimp deal.
17 Red Lobster locations are closed as part of the mass shuttering. Photographer: Luke ... [+]
The contents of almost 50 Red Lobster restaurants in California, Florida, New York and more are being auctioned off by TAGeX Brands, with each auction winner receiving the entire contents of the location they bid on.
The damage could go even further: Restaurant Business magazine found at least 99 restaurants on Red Lobster's website that were listed as closed on Tuesday, adding up to some 15% of the chain's more than 600 locations.
TaGeX Brands listed auctions for closed stores in Alabama, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Maryland, Michigan, Mississippi, New York, New Jersey, North Dakota, Oklahoma, South Carolina, Texas, Virginia, Washington and Wisconsin.
This is a developing story. Check back for updates.