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The iconic seafood chain, Red Lobster seems to be in the middle of a hurricane-type storm. After a wave of closures in May, new documents are suggesting the company might shutter another 100 locations this month.
These closings come on the heels of Red Lobster filing for bankruptcy officially in May. The company has been struggling financially for years, and according to Red Lobster these closures are an attempt to streamline operations so they can get back into the game.
The new documents cite 228 rejected restaurant leases that are on course to lose money. Included in the list were locations that closed last month, but there are 100+ in the document that are still open and will likely meet the same fate.
One of them being located in Times Square. The New York Post reported the location’s landlords are increasing the rent to $2.2 million, more than double what they’re paying now. Red Lobster is currently negotiating with the landlords ahead of the lease expiring on June 30.
CEO Jonathan Tibus said in a statement last month:
“This restructuring is the best path forward for Red Lobster. It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth. The support we’ve received from our lenders and vendors will help ensure that we can complete the sale process quickly and efficiently while remaining focused on our employees and guests.”
The news comes as a blow to Red Lobster employees and seafood fans alike as many restaurants closed abruptly in May, leaving workers scrambling and loyal customers disappointed to find their local restaurant shuttered out of the blue.
There’s no official confirmation from Red Lobster to confirm these further closures, but the documents existence paint a concerning picture. With potentially 100 more closures on the horizon, it’s unclear how many Red Lobsters will remain open. As of last month, there were approximately 570 locations in the US.
