These 7 Red Lobster locations in Maryland, Virginia are closing – NBC4 Washington

Red Lobster’s famous Cheddar Bay biscuits will soon be harder to find in Maryland and Virginia.

More than fifty Red Lobster locations are closing due to the seafood chain’s financial troubles, including seven restaurants in Maryland and Virginia.

The closures represent just a fraction of Red Lobster’s approximately 700 locations.

List: Red Lobster locations are closing in Maryland and Virginia

• Gaithersburg, Maryland
• Columbia, Maryland
• Silverfeather, Maryland
• Laurel, Maryland
• Colonial Heights, Virginia
• Williamsburg, Va
• Newport News, Virginia

Red Lobster’s closure comes just months after ‘endless shrimp losses’

Restaurant liquidator TAGeX Brands announced this week that it would auction off equipment from more than 50 Red Lobster locations that recently closed as part of the seafood chain’s “footprint rationalization.” The locations span more than two dozen states, reducing Red Lobster’s presence in cities such as Denver, San Antonio, Indianapolis and Sacramento, California.

It’s unclear whether Red Lobster plans to close any more restaurants in the near future. The Orlando, Florida-based company did not immediately respond to The Associated Press’ requests for comment.

On Red Lobster’s website Tuesday morning, a handful of affected locations were listed as “temporarily closed” or “unavailable.”

Red Lobster has been struggling for a while. With rent and labor costs rising in recent years, the chain is now reportedly considering filing for bankruptcy protection. A possible Chapter 11 filing could help Red Lobster terminate some long-term contracts and renegotiate many of its leases, unnamed sources familiar with the matter told Bloomberg News last month.

Maintaining stable management has also proven difficult as the company has experienced multiple ownership changes over 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 impacted Red Lobster and resulted in “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.

And then there is the problem of endless shrimp. Last year, Red Lobster significantly expanded its iconic all-you-can-eat shrimp deal. But customer demand exceeded what the chain could afford, also reportedly contributing to the millions in losses.

TAGeX Brands’ auctions for the more than 50 closing Red Lobster locations undergoing liquidation began Monday and will run through Thursday. Sales are “winner takes all” – meaning one winner will receive all content for each location. Images on the TAGeX Brands website indicate that these include ovens, refrigerators, bar setups, dining furniture and more.

TAGeX Brands called the liquidation “the largest restaurant equipment auction event ever.” In a statement, founder and CEO Neal Sherman said the goal of such online auctions was to “prevent high-quality items from ending up in landfills” and instead promote sustainable reuse.

As of Tuesday morning, auctions for 48 locations were still active after four more sales closed Monday, TAGeX Brands said via email.

Red Lobster’s roots date back to 1968, when the first restaurant opened in Lakeland, Florida. In the decades that followed, the chain expanded rapidly.

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