Three of Red Lobster’s Georgia locations, roughly 10% of the seafood chain’s local eateries, have been temporarily closed.
According to the official website, the restaurants at 1956 W. Broad St., Athens; 1050 Holcomb Bridge Road, Roswell; and 2105 Veterans Blvd., Dublin, are no longer open.
The three locations are only the latest in a series of closures that have affected dozens of Red Lobsters. According to a CNN report, at least 48 of the seafood chain’s restaurants have been temporarily closed. Restaurant after-marketplace supplier TAGeX Brands is also conducting an online auction of Red Lobster inventory, including kitchen equipment, furniture and more.
News of the local closings comes days after Business Insider reported Red Lobster is still likely considering filing for bankruptcy. Once a pioneer of the casual-dining industry, the news outlet said the seafood chain has faced multiple challenges lately — including stock-tumbling food promotion flops.
Citing financial headwinds, minority investor Thai Union announced in January it planned to exit the seafood chain.
“The combination of Covid-19 pandemic, sustained industry headwinds, higher interest rates and rising material and labor costs have impacted Red Lobster, resulting in prolonged negative financial contributions to Thai Union and its shareholders,” Thiraphong Chansiri, Thai Union Group’s CEO, said in a news release. “After detailed analysis, we have determined that Red Lobster’s ongoing financial requirements no longer align with our capital allocation priorities and therefore are pursuing an exit of our minority investment.”
By April, Bloomberg reported, Red Lobster was considering filing for bankruptcy. Undisclosed sources reportedly told Bloomberg the filing would allow the restaurant chain to continue operating while reducing its debts.
Red Lobster first opened its doors in 1968 with a restaurant in Lakeland, Florida. By 1970, after being purchased by food processing titan General Mills, the seafood eatery had already proliferated across the country as a nationwide chain. Today, Red Lobster has around 650 locations.
The Atlanta Journal-Constitution reached out to Red Lobster for comment and will update this story accordingly.
