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Red Lobster files for bankruptcy; Illinois restaurants closing – NBC Chicago

Red Lobster has filed for Chapter 11 bankruptcy protection after closing nearly 50 restaurants in more than 20 states, including Illinois.

The seafood chain has struggled in recent years with rising rental and labor costs, as well as promotions such as the iconic all-you-can-eat shrimp deal that backfired.

Demand for such a recent promotion overwhelmed restaurants, reportedly contributing to millions in losses.

The seafood restaurant chain said in a lawsuit late Sunday that it has more than 100,000 creditors and an estimated net worth of between $1 billion and $10 billion. The company’s estimated debt is between $1 billion and $10 billion.

The bankruptcy filing was signed by CEO Jonathan Tibus, a corporate restructuring specialist who took the top position at Red Lobster in March.

Restaurant liquidator TAGeX Brands announced last week that it would auction off equipment from more than 50 Red Lobster locations that recently closed. The store closures span more than two dozen states, reducing Red Lobster’s presence in cities such as Denver, San Antonio, Indianapolis and Sacramento, California.

Maintaining stability at the Floriday chain has been problematic due to multiple ownership changes in its 56-year history. Earlier this year, Thai Union Group, co-owner of Red Lobster, one of the world’s largest seafood suppliers, announced its intention to exit its minority investment in the dining chain.

Thai Union first invested in Red Lobster in 2016 and increased its stake in 2020. At the time of announcing its plans to divest in January, CEO Thiraphong Chansiri said the COVID-19 pandemic, industry headwinds and rising operating costs had hit the food chain. harsh and caused “long-term negative financial contributions to Thai Union and its shareholders.”

For the first nine months of 2023, the Thai company reported a $19 million share of Red Lobster’s losses.

Red Lobster’s roots date back to 1968, when the first restaurant opened in Lakeland, Florida. The chain has grown rapidly since then and has more than 700 locations worldwide.

Which Red Lobster locations will close?

Red Lobster says it is closing nearly 50 of its restaurants in the US. Here’s a look at the latest list of locations that will close.

Alabama

Chestnut brown

Decatur

California

Rescue

Rohnert Park

Sacramento

San Diego

Torrance

Colorado

Denver

Lakewood

Lonely tree

Wheat Ridge

Florida

Altamonte Resources

Gainesville

Hialeah

Largo

Orlando

Georgia

Athens

Roswell

Dublin

Idaho

Lewiston

Illinois

Bloomingdale

Danville

Indiana

Indianapolis

Elkhart

Iowa

Council Bluffs

Waterloo

Maryland

Gaithersburg

Colombia

Silver spring

Laurel

Michigan

Fort

Gratiot

Mississippi

D’lberville

New York

Amherst

Kingston

Rochester

New Jersey

Ledgewood

North Dakota

Big forks

Oklahoma

Lawton

South Carolina

Myrtle beach

Texas

More Jackson

Long view

San Antonio

Virginia

Colonial heights

Williamsburg

Nieuwpoort News

Washington

Silverdale

Wisconsin

Wauwatosa

La Crosse