Red Lobster shuttering dozens of US locations amid ongoing difficulties

Red Lobster is closing as many as 48 US locations according to multiple reports. Dozens of Red Lobster franchises were listed as “temporarily closed” Tuesday on the company's website, including two in Illinois. According to NBC, both the Bloomingdale and Danville Red Lobsters were listed as closed. Red Lobster currently operates approximately 650 locations nationwide, as noted by CNN.

The mass closures signal troubles for the storied restaurant chain, marking the first occasion in its decades-long history that Red Lobster has simultaneously shuttered dozens of franchises, according to CNN.

 The restaurant is reportedly considering bankruptcy protections, and auctioning off inventory, according to reports. TAGeX Brands is holding a web auction of the restaurant chain's inventory beginning Monday and continuing through Thursday, TAGeX CEO Neal Sherman told CNN.

Red Lobster's decline in recent years can be attributed to factors including internal management issues, industry experts told CNN. In 2020, Red Lobster supplier Thai Union became a major shareholder in the company, according to reports. Under Thai Union's leadership, Red Lobster lost more than $11 million during its first quarter due to its unlimited shrimp special, according to NBC.

Additionally, the popularity of quick-order chains Chick-fil-A and Chipotle have reshaped the dining landscape, causing sit-down casual dining establishments like Red Lobster to decline. Casual dining slipped from 36% to 31% of restaurant industry sales between 2013 and 2023, according to data obtained by CNN.