Red Lobster considers bankruptcy
Could this be the end of the cheddar bay biscuits?
Fox – LA
At least two Red Lobster restaurants in Iowa are closed, joining dozens of other closures across the country.
The seafood chain’s website shows 87 locations are temporarily closed across America, USA TODAY reported.
These closures come as TAGeX Brands, which helps restaurants remove and sell equipment after a closure, announced it was auctioning off restaurant equipment from more than 50 Red Lobster locations across America. As the liquidator called the sales the “largest restaurant equipment auction ever.”
The seafood restaurant chain, which began in Florida in 1968 and was popular for its endless shrimp promotions and cheddar bay biscuits, was considering filing bankruptcy to restructure their debt, Bloomberg reported in April.
Here’s what we know.
Is Red Lobster closing in Iowa?
Two locations in Iowa are listed as “temporarily closed” on the restaurant chain’s website and are also listed on the TAGeX’s auction:
Red Lobster in Waterloo, 941 E. San Marnan DriveRed Lobster in Council Bluffs, 3040 Dial Drive
Managers of the Waterloo Red Lobster confirmed to TV station KWWL that the location closed abruptly and that they were let go from the chain, per an article published Monday.
More: As Red Lobster locations close, here’s a look back at Florida-original restaurant, its menu
How many Red Lobster locations are in Iowa?
There are eight Red Lobsters in the state, according to restaurant’s online store directory, including the closed Waterloo and Council Bluffs locations.
Red Lobster’s six remaining locations are in Ames, Cedar Rapids, Coralville, Davenport, Sioux City and West Des Moines.
Red Lobster closes locations after reports of possible bankruptcy, operating loss
Bloomberg reported in April that the restaurant chain was considering filing Chapter 11 bankruptcy and that it was challenged by current leases and labor costs. By filing for bankruptcy, Red Lobster would remain open as it reorganizes funds to pay off existing debt over time, seeking to continue with better financial footing.
Any discussions about restructuring are ongoing and no final decisions have been made about a bankruptcy filing as of April 18.
In 2023, Red Lobster also reported an $11 million loss in the third quarter following their endless shrimp deal, according to USA TODAY.
USA TODAY network reporters Jennifer Sangalang, Samantha Neely and John Gallas contributed to this article.
Paris Barraza is a trending and general assignment reporter at the Des Moines Register. Reach her at [email protected]. Follow her on Twitter @ParisBarraza.
Source link : https://www.desmoinesregister.com/story/entertainment/dining/2024/05/14/red-lobster-restaurants-closing-iowa-locations-waterloo-council-bluffs/73682691007/
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Publish date : 2024-05-14 03:00:00
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