Red Lobster abruptly closes dozens of restaurant locations around US, preparing to liquidate

Red Lobster has reportedly closed dozens of restaurants across the country and an online restaurant liquidator is auctioning off kitchen equipment from those locations.

The liquidator, TAGeX Brands, announced Monday it is auctioning off equipment this week from 48 locations that have closed. The website says auctions are live and will end periodically on Thursday, and that each winner will receive the "entire contents of the Red Lobster location they bid on."

The website lists five locations each in California and Florida, and four locations each in Colorado and Maryland. Other states, such as Alabama, Georgia, New York and Texas, among others, will also reportedly see locations shutter.

USA TODAY reached out to Red Lobster on Tuesday and did not get a response prior to publication.

Here's what we know about the closures, including where they're happening and why these restaurants are closing.

Red Lobster closures:Red Lobster website lists 87 restaurant locations 'temporarily closed' in 27 states: See full list

'Endless Shrimp' deal costs Red Lobster:Red Lobster's 'Endless Shrimp' deal surpassed expectations, cost company millions

Red Lobster considered filing for bankruptcy in April

The seafood chain considered filing for Chapter 11 bankruptcy last month in an effort to restructure its debt, according to Bloomberg.

The company had been getting advice from law firm King & Spalding as it looked to shed some long-term contracts and renegotiate leases, Bloomberg reported, noting that Red Lobster's cash flows had been weighed down by leases and labor costs, among other issues.

'Ultimate Endless Shrimp' promotion led to big losses for Red Lobster

In 2023, the seafood chain's "Ultimate Endless Shrimp" deal became more popular than expected, inadvertently becoming a key factor in a $11 million loss in the third quarter.

The limited-time promotional deal, in which guests picked two types of shrimp to enjoy nonstop for $20, landed a permanent spot on Red Lobster menus in June. Red Lobster's parent company, Thai Union Group, said in November 2023 that the chain was headed toward a $20 million loss for 2023. Now the endless shrimp deal costs $25.

Thai Union Group CFO Ludovic Regis Henri Garnier said in an earnings report call that the company was aware the initial price for the endless-shrimp deal was cheap. The offer was intended to draw customers into restaurants, but orders exceeded expectations, he said.

"We wanted to boost our traffic, and it didn't work," Garnier told investors in November 2023, according to Restaurant Business Magazine. "We want to keep it on the menu. And of course we need to be much more careful regarding what are the entry points and what is the price point we are offering for this promotion."

Which Red Lobster locations are closing?

More than a dozen Red Lobster restaurants in Florida have closed, with signs on the door of some locations saying, "This location is closed. We look forward to serving you at another Red Lobster in the future," according to the Daytona Beach News-Journal, part of the USA TODAY Network.

The News-Journal, citing Red Lobster's website, reports that three locations in Jacksonville, three in Orlando, two in Tampa and one in Daytona Beach, among others, are closed. These locations were listed as "Closed" under its hours for all days of the week on their websites.

Two locations in Wisconsin are listed as "temporarily closed," according to the Milwaukee Journal Sentinel, also part of the USA TODAY network. Those locations are in Wauwatosa and La Crosse.

Contributing: Drake Bentley, Milwaukee Journal Sentinel; Jennifer Sangalang, Samantha Neely & John Gallas, USA TODAY Network-Florida

Gabe Hauari is a national trending news reporter at USA TODAY. You can follow him on X @GabeHauari or email him at Gdhauari@gannett.com.