Red Lobster Holiday Hours 2024-2025: Closed or Open Schedule (2024)

FAQs

Is Red Lobster going out of business in 2024? ›

"Bankruptcy is a word that is often misunderstood," Red Lobster's communications team said in the statement posted to social media. "Filing for bankruptcy does not mean we are going out of business. In fact, it means just the opposite.

CEO Thiraphong Chansiri said the pandemic, higher interest rates, rising material and labor costs have all played a role in Red Lobster's poor financial performance.

Three more Red Lobster locations in Pennsylvania could be shuttered this year if the struggling seafood restaurant chain can't renegotiate leases in certain locations. According to a recent bankruptcy court filing, locations in Pittsburgh, Chambersburg and King of Prussia face closure possibilities.

In 2014, Darden sold off Red Lobster to Golden Gate Capital, a private equity firm, for $2.1 billion. Since 2020, seafood distributor Thai Union Group, based in Thailand, has been the largest Red Lobster shareholder. Thai Union owns 49% of the company.

By Nathaniel Meyersohn | CNN

Struggling Red Lobster is abruptly closing at least 48 of its restaurants around the country, according to a leading restaurant liquidator. TAGeX Brands is conducting an online auction of Red Lobster kitchen equipment, furniture and other contents at restaurants closing.

General Mills quickly bought Red Lobster and in 1995 spun the chain off into a new company, Darden Restaurants, named after its founder. In 2014, Darden sold Red Lobster to Golden Gate Capital, a private equity firm, for $2.1 billion. To help fund the deal, Red Lobster spun off its real estate.

Darden Restaurants, Inc. is an American multi-brand restaurant operator headquartered in Orlando, Florida.

Lobster coming off menus after Seafood Watch red-lists it over fishing danger to whales. MONTEREY BAY — Some retailers are taking lobster off the menu after an assessment from an influential conservation group that the seafood poses too much of a risk to rare whales and should be avoided.

See Photo's below If you are looking for fresh seafood when you pass Red Lobster... Everything they serve is frozen .. From the fish to the shrimp to the High $$$$$ Lobster Tails .. See Photo's below If you are looking for fresh seafood when you pass Red Lobster ..

What wrecked Red Lobster? ›

The bankrupt casual restaurant chain didn't fail because of Endless Shrimp. Its problems date back to monopolist seafood conglomerates and a private equity play. People walk past a Red Lobster restaurant located in Times Square, New York, May 15, 2024.

Darden Restaurants (NYSE:DRI) is a multi-brand restaurant operator with over 1800 locations, best known for owning Olive Garden. Darden sold Red Lobster to Golden Gate Capital in 2014 at a 9x EBITDA multiple, after facing growing operational challenges.

So, a seafood restaurant with that name has turned into a luxury restaurant in the eyes of consumers. After all, perception is reality. As a result, despite all efforts by management to attract customers, Red Lobster is now a money loser. The reason for the unit closures is high debt.

Endless shrimp was an annual limited-time offer for Red Lobster for 20 years. But Thai Union saw it as a way to sell off the mountains of shrimp it was catching and made it a permanent menu item instead.

Red Lobster could close more than 100 additional restaurants if it's unable to renegotiate their leases, according to bankruptcy documents filed this week. In the filings, Red Lobster lists 228 rejected leases that the company has determined will keep losing money if they continue operating as-is.

Some retailers are taking lobster off the menu after an assessment from an influential conservation group that the harvest of the seafood poses too much of a risk to rare whales and should be avoided.

Red Lobster's sales began declining and Darden prioritized investments in its other brands. Darden soon faced pressure from activist investors pushing the company to split in two. Darden responded to activist pressure by announcing plans in 2013 to sell Red Lobster, separating the chain from the rest of its business.

During fiscal 2023, Red Lobster reported $76 million in net losses. Its cash position also diminished last year following an operating cash loss of $31 million and a forced repayment of $27 million in debt following a transition to a vendor-managed inventory program.

Restaurants in Littleton, Northglenn and Aurora remain open. Last year, Red Lobster reported an $11 million loss in the third quarter after their "endless shrimp" deal. The store closures come as many Wall Street analyst suspect the restaurant will declare bankruptcy in coming weeks.