Red Lobster, a popular seafood restaurant chain, is facing challenges and has announced the closure of numerous locations across the country. The company, struggling to stay afloat, revealed plans to auction off over 50 locations nationwide.
TageX Brands, a restaurant liquidation company, will manage the sale of equipment from these closing locations. This marks TageX's largest restaurant equipment auction to date, although only 48 locations were specifically listed in their catalog.
California will see the closure of five Red Lobster locations, while Florida will lose another five. Additionally, Colorado and Maryland will each bid farewell to four locations.
TageX is selling these locations in their entirety, emphasizing that each winner of the auction will acquire the complete contents of the Red Lobster establishment they bid on.
Earlier this year, reports surfaced about Red Lobster contemplating a bankruptcy filing to alleviate financial strains. According to sources familiar with the matter, discussions about potentially filing for Chapter 11 bankruptcy are ongoing. This move could help the company renegotiate leases, address long-term contracts, and manage escalating labor costs.
Red Lobster appointed Jonathan Tibus as its new CEO in March. Tibus, known for his expertise in restructuring struggling restaurants, retail, and hospitality businesses, has spearheaded various successful restructuring initiatives in the past.
This report includes contributions from Eric Revell of Fox News Digital.
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