Store closings all over the U.S. are increasing, thanks to the policies of Biden and the Democrats. The restaurant business is particularly vulnerable due to food costs increasing over 55% in many cases, due to Biden and Democrat policies designed to increase inflation. Keep this in mind the next time you hear of inflation at 3 or 3%. This is an utter joke to all Americans who actually shop for their food.
Red Lobster could face additional restaurant closures if it fails to renegotiate its leases, as per bankruptcy documents filed last week. The seafood chain has identified 228 leases that are financially unsustainable, some of which pertain to locations already closed.
Bye, bye biscuits? Red Lobster could be shuttering even more locations.🦞😓 @RyanReports breaks down the latest from the seafood chain.
LIST: https://t.co/GOMVz0v6sO#redlobster #bankruptcy #restaurant #seafood #cheddarbaybiscuits pic.twitter.com/JBwpphw3hY
— The National Desk (@TND) June 6, 2024
As of May 22, Red Lobster had shuttered 99 locations across 28 states, with some of their kitchen equipment being auctioned off online. This leaves 129 more restaurants at risk of closure if lease renegotiations are unsuccessful.
Among the notable locations included in the list of potentially closing restaurants is the iconic Times Square venue in New York. According to reports, the property owners are demanding an annual rent of $2.2 million for the 16,482-square-foot space. Red Lobster has operated at this prime location for 22 years and is reportedly trying to keep it open despite the financial challenges.
The company’s bankruptcy filing, submitted in the Middle District of Florida, highlights multiple difficulties the chain has faced, including a significant 30% decline in guest numbers since 2019. A detailed 124-page document reveals the reasons behind Red Lobster’s decision to file for bankruptcy, as explained by CEO Jonathan Tibus. The document outlines various issues such as a challenging macroeconomic environment, an oversized and underperforming restaurant portfolio, failed strategic initiatives, and intensified competition within the restaurant industry.
Red Lobster has identified the locations that are in danger of shutting down if a court approves its plan following bankruptcy. That plan is set to close some of its nearly 600 restaurants, including the Corpus Christi location. pic.twitter.com/Agk9Yn5hlF
— KRIS 6 News (@KRIS6News) June 7, 2024
Red Lobster has yet to respond to requests for comment.
Below is a summary of the 228 locations listed in the bankruptcy documents, which includes some already closed restaurants: This list is expected to expand as the situation continues to deteriorate.
Alabama: Tuscaloosa
Arizona: Flagstaff, Peoria, Phoenix (North 75th Ave.), Tucson (North Oracle Rd.), Yuma
Arkansas: Fayetteville, Fort Smith, Hot Springs, Little Rock
California: Citrus Heights, Milpitas, Monrovia, Pittsburg, Salinas, San Bernardino, San Jose, Stockton, Vallejo
Colorado: Colorado Springs (N. Academy Blvd), Fort Collins, Greeley, Pueblo
Connecticut: North Haven
Delaware: Talleyville
Florida: Altamonte Springs (already closed), Clermont, Clearwater, Coral Springs, Fort Lauderdale, Fort Myers, Fort Walton Beach, Kissimmee (Bronson Memorial Hwy), Lake Worth, Lakeland, Leesburg (already closed), Melbourne, Merritt Island, Miami, North Miami, Orange Park, Orlando (N. Alafaya Trail), Orlando (9892 International Dr.), Orlando (Golden Sky Lane) (already closed), Pensacola, Port Richey, Spring Hill, St. Petersburg, Tampa (N. Dale Mabry), The Villages, West Palm Beach
Georgia: Columbus (Adams Farm Dr.), Jonesboro, Rome, Smyrna
Illinois: Bourbonnais, Champaign
Indiana: Kokomo, Michigan City, Richmond
Iowa: Ames
Kansas: Overland Park, Topeka
Kentucky: Louisville, Paducah
Maryland: Salisbury
Michigan: Bay City, Kentwood, Waterford
Minnesota: Bloomington, Golden Valley
Mississippi: Tupelo
Missouri: Bridgeton, Independence, Joplin
New Jersey: Delran, Mays Landing, Paramus
New York: Bronx, Copiague, Lakewood, Manhattan, Queensbury, Stony Brook (already closed)
North Carolina: Cary (already closed), Jacksonville
Ohio: Dayton, Findlay, Maumee, New Philadelphia, Parma, Strongsville, Toledo
Pennsylvania: Chambersburg, King of Prussia, Pittsburgh (McKnight Road)
South Carolina: Cayce, Charleston
Tennessee: Chattanooga (Northgate Mall Lane)
Texas: Austin (S. Lamar Blvd.), Austin (W. Anderson Lane), Corpus Christi, Duncanville, Frisco, Houston (S. Highway 6), Lubbock, North Richland Hills, San Antonio (N. Loop 1604 West), San Antonio (S.W. Loop 410), San Antonio (US 281 North), San Marcos, Shenandoah, Texarkana, Wichita Falls
Virginia: Alexandria, Chesapeake, Fairfax, Fredericksburg, Richmond (S. Laburnum Ave.), Richmond (W. Broad Street), Virginia Beach (Lynnhaven Pkwy.), Virginia Beach (Independence Blvd.)
Washington: Lynnwood, Silverdale (already closed)
West Virginia: Parkersburg
Red Lobster could shut down 135 more restaurants in rent negotiations after filing for bankruptcy : report https://t.co/HRJo5VjQNd pic.twitter.com/6VK4as0hpB
— New York Post (@nypost) June 5, 2024
The list showcases the widespread impact of Red Lobster’s financial struggles, emphasizing the potential for further closures if lease agreements cannot be renegotiated.
Major Points:
- Red Lobster could close an additional 129 restaurants if it cannot renegotiate leases, according to recent bankruptcy filings.
- The company has already closed 99 locations across 28 states, some of which have had their kitchen equipment auctioned off.
- A significant decline in guest numbers and various financial challenges have led to the company’s current bankruptcy status.
- The iconic Times Square location in New York is among the 228 leases identified as financially unsustainable, though efforts are being made to keep it open.
- CEO Jonathan Tibus attributes the financial difficulties to a tough economic environment, failed strategic initiatives, and increased competition in the restaurant industry.
Susan Guglielmo – Reprinted with permission of Whatfinger News