Popular Restaurant Chain Suddenly Closes A Location In Washington

By Zuri Anderson

May 14, 2024

The hand turns the sign with the inscription open to the Closed position. The end of the working day
Photo: StockSeller_ukr / iStock / Getty Images

Red Lobster has abruptly shut down dozens of locations across the nation, including some in Florida, amid financial struggles.

TAGeX Brands, a liquidation company, announced Monday (May 13) that they're auctioning off kitchen equipment, chairs, tables, and other articles from 48 closed restaurants. The website also listed the affected locations and their addresses, and these stores have been listed as "temporarily closed" on the seafood chain's website.

The liquidator showed that only one location in Washington state was shuttered, and that's the one in Silverdale. Nine Red Lobster restaurants remain in the state, according to the company's website.

Red Lobster was considering filing for Chapter 11 bankruptcy last month to tackle its debt, according to Bloomberg. The "Ultimate Endless Shrimp" promotion, which debuted last year and allowed customers to eat as much shrimp as they wanted for just $20, led to a loss of $12.5 million for the brand. The limited-time promotion became a menu staple and now costs $25.

Food industry experts have also described the longtime restaurant chain as a "zombie brand" that "continues to wander aimlessly looking for direction." On top of the popular promotion setting them back millions of dollars, they've also been struggling to keep up with leases and labor costs, per Bloomberg.

The longtime restaurant chain has over 600 locations in the United States. It's unclear what they have planned for the rest of their locations.

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