Restaurant Chain's Financial Woes Extend to Texas, with Multiple Location Closures

Red Lobster Closes Three Texas Locations as Bankruptcy Looms

Photo byTim MossholderonUnsplash

In a devastating blow to workers and seafood lovers in the Lone Star State, Red Lobster has abruptly closed multiple locations across Texas as the chain teeters on the brink of bankruptcy.

The struggling casual dining company made the shocking announcement this week shuttering over 80 restaurants nationwide and leaving around 6,500 employees in limbo. Three Red Lobster outlets in Texas have gone dark - 104 Texas 332 in Lake Jackson, 3515 McCann Road in Longview, and 7835 Interstate 35 South in San Antonio.

This sudden wave of closures is a potential precursor to Red Lobster filing for Chapter 11 bankruptcy in a last-ditch effort to restructure its finances and operations. Industry experts have described the chain as a "struggling company" for some time.

In an ominous sign, a restaurant liquidation firm has already listed 48 Red Lobster locations up for auction, including the three Texas restaurants. TAGeX Brands stated these "WINNER TAKES ALL" auctions, running until May 16th, mean bidders could purchase entire locations' contents from furniture to cooking equipment.

While Red Lobster has remained tight-lipped about bankruptcy plans, such liquidation fire sales are typically reserved for companies in dire financial straits. The closures have left Texan employees and diners reeling.

As concerns mount over Red Lobster's future, all eyes are on whether the chain will officially enter Chapter 11 bankruptcy proceedings in the coming days. Such a move would likely lead to more restaurant closures across Texas and beyond as Red Lobster attempts to regain solid financial footing.

Texas locations being auctioned

• 7835 Interstate 35 South in San Antonio
• 104 Texas 332 in Lake Jackson
• 3515 McCann Road in Longview

Your thoughts

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