Red Lobster, the iconic seafood restaurant chain, is closing additional locations as it struggles to recover from a bankruptcy filing earlier this year.
The latest closures include two New York locations, one in Queensbury and another in the Bronx. These closures follow a string of others in states like Florida, Illinois, Minnesota, and Virginia, highlighting the widespread impact of the chain’s financial difficulties.
The 56-year-old chain filed for bankruptcy in May after a series of financial setbacks, including losses from promotional deals intended to attract customers.
One such promotion, a $20 all-you-can-eat shrimp deal, was introduced post-pandemic in hopes of boosting restaurant traffic. However, the promotion backfired, becoming a social media challenge where customers tried to eat as much as possible, leading to significant losses for the company.
This isn’t the first time Red Lobster faced such issues; a similar misstep occurred in 2003 with an “Endless Crab” promotion during a spike in crab prices.
Red Lobster CEO Jonathan Tibus expressed optimism about the company’s future despite the current challenges.
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“This restructuring is the best path forward for Red Lobster,” Tibus stated, emphasizing that the bankruptcy process will help the chain address its financial and operational challenges.
For more detailed coverage, visit Irish Star.
