Dozens of Red Lobster locations being liquidated after sudden closures

By Mike Murphy

Seafood restaurant chain Red Lobster has abruptly closed dozens of locations around the country, and is selling them off in what is being called the largest restaurant liquidation ever.

At least 48 Red Lobster locations are currently being individually auctioned off by restaurant liquidator TAGeX Brands, including furniture, fixtures and equipment. "Each winner will receive the ENTIRE contents of the Red Lobster location they bid on," TAGeX said on its website.

"TAGeX Brands is proud to launch the largest restaurant liquidation EVER through its online auction marketplace," TAGeX Chief Executive Neal Sherman said in a LinkedIn post Monday. "WINNER TAKES ALL."

The auction website said "50+" locations are being auctioned off, though it listed only 48 sites, across 21 states. Red Lobster had about 650 locations in the U.S. as of Feb. 1.

Red Lobster did not immediately respond to a request for comment.

In April, Bloomberg News reported Red Lobster had hired advisers and was considering filing for bankruptcy, citing high costs of leases and labor.

Thai Union Group (TH:TU), which owns a controlling stake in the company, said in a March financial statement that it was "actively engaged in negotiations with potential buyers," and said it hopes to sell its stake in the restaurant chain by the end of 2024.

Last year, Thai Union said Red Lobster's $20 endless-shrimp promotion hurt its margins, and it had to raise prices.

-Mike Murphy

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05-13-24 2125ET

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