Red Lobster Closing Another 23 Restaurants as Former P.F. Chang’s CEO Takes Over

Red Lobster is shuttering 23 more locations across several states. The restaurant chain continues its reorganization via a Chapter 11 bankruptcy, which was filed in May. Subsequently, Red Lobster tapped former P.F. Chang’s CEO Damola Adamolekun to take over the floundering company and stop the closures of further restaurants.

The newest restaurant locations to cease operations bring the total to at least 129 across the U.S., reports USA Today. Three restaurants are closing in Florida, Illinois, and Virginia; two are closing in Minnesota and New York; and one each is shutting down in Arizona, Arkansas, California, Colorado, Georgia, Indiana, Missouri, North Carolina, Ohio, and South Carolina.

USA Today writes, “In a 23-page court document filed Aug. 22 in U.S. Bankruptcy Court for the Middle District of Florida, the Orlando-based company said it is rejecting the leases of an additional 23 locations by Saturday, Aug. 31.”

CNN reports that once the closings are complete, Red Lobster will only have about 500 operational restaurants. In 2023, 650 installments of the chain restaurant were still open. The brand is being sold to Fortress Credit Corp., a restaurant management lender that owns Krystal, Logan’s Roadhouse, and J. Alexander’s.

23 more Red Lobster restaurants close: See the full list of 129 shuttered locations https://t.co/AItzXh2f5I

— USA TODAY (@USATODAY) August 27, 2024

The New York Post shared a statement from new CEO Adamolekun regarding the company’s future. It reads, “I’m looking forward to working with our team members across North America to reinvigorate the brand by making it the best place to work for our employees and improving the experience for our guests.”

This interest in invigorating the beloved seafood chain restaurant follows a company statement released on May 19. The statement reads that Red Lobster Management LLC has voluntarily filed for relief under Chapter 11 of the Bankruptcy Code for the Middle District of Florida. Red Lobster intends to use the proceedings from this filing to drive operational improvements, simplify its business by reducing restaurant locations, and “pursue a sale of substantially all of its assets.”

Coleman Insights claims that the company’s undoing was its wildly popular endless shrimp promotion. With a price point of just $20, the chain needed to catch up with customer demand. Therefore, the restaurant reportedly lost upwards of $11 million in its third quarter.