Red Lobster Closes More Locations Post-Bankruptcy
Casual dining chains are continuing to streamline their operations by closing underperforming locations amid rising costs and shrinking sales. Red Lobster, which emerged from bankruptcy in September 2024, is shutting down two more restaurants in Alabama on Sept. 6 as part of its ongoing restructuring efforts. The seafood chain has closed a total of 163 locations since filing for Chapter 11 protection in May 2024 and currently operates 524 units across the U.S. and Canada. Red Lobster's new ownership, led by RL Holdings LLC—a group backed by Fortress Investment Group—has committed over $60 million to revitalize operations. The closures are part of a broader trend in the casual dining sector as chains like Applebee’s and Ruby Tuesday also reduce their footprint.
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Topics: bankruptcy recovery real estate leases restaurant closures