Red Lobster is closing another 23 of its stores.
Recently released documents indicate that the company will terminate the leases of an additional 23 locations by August 31, 2023, which coincides with the closure of over 100 Red Lobster facilities this summer. Once that process is complete, the chain will have only about 500 locations – a significant drop from last year’s 650.
Red Lobster is close to being sold to Fortress Credit Corp., a financial institution with extensive experience in restaurant management and owner of Krystal, Logan’s Roadhouse and J. Alexander’s. Fortress Credit Corp. recently provided Red Lobster with a $100 million loan to keep it operating.
Red Lobster’s decline can be attributed to poor management, strong competition, inflation and other unforeseen factors. In 2020, Thai Union, a major global seafood supplier, became Red Lobster’s major shareholder. Four years later, in May 2024, Thai Union itself filed for bankruptcy.
During Thai Union’s leadership, Red Lobster’s work environment became increasingly hostile, former executives revealed to CNN. Red Lobster implemented drastic cost-cutting, cut ties with long-time suppliers and implemented strategies that backfired, such as making the “Endless Shrimp” deal permanently on the menu. The company posted an $11 million loss as a result.
The list of restaurants to be closed states “these locations will continue to generate losses” and “the company sees no need for them to operate its business and therefore may terminate the leases,” the documents explain.
Here are the Red Lobster restaurants that will be closing:
Arizona
-1521 S. Yuma Palms Pkwy., Yuma
California
-8703 Murray Drive, La Mesa
-8407 W. Markham St., Little Rock
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
-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
CNN’s Nathaniel Meyersohn contributed to this report.
After securing a $100 million loan from Fortress Credit Corp., Red Lobster has focused on strengthening its core business, which has resulted in the closure of several underperforming restaurants. Despite these closures, Red Lobster continues to serve delicious seafood dishes to its loyal customers.
