Red Lobster could shut down 135 more restaurants as it battles with landlords

Red Lobster is at risk of shutting down more than 135 additional restaurants if the company is unable to renegotiate their leases with its landlords.
The largest seafood chain in the world, owned by the Thai Union Group, has already closed more than 93 of its 580 restaurants across 27 US states on May 13.
A week later, the Orlando-based company has filed for Chapter 11 bankruptcy protection, with the hopes of restructuring its finances and renegotiating new leases.
The company acknowledged in its bankruptcy filings that it had “a bloated and underperforming restaurant footprint.”
The company cited its recent financial failures to poor management, increased competition, inflation, lease and labor costs, as well as a failed $20 all-you-can-eat crab and shrimp promotion, among other factors.
The “Endless Shrimp” promotion,” which was launched last summer, led to an operating loss of over $11 million in its third quarter, prompting management to raise the price of the deal to $25.
Another batch of 135 more Red Lobster restaurants are at risk of losing money, and likely shut down, if the leases keep operating as they are, Restaurant Business reported, citing bankruptcy filings.
Red Lobster has only a few weeks to negotiate and finalize new terms of its lease with landlords for the restaurant in Times Square. It is set to expire on June 30.
Thai Union Group first invested in Red Lobster in 2016, and bought nearly 50 percent of its stake four years later.
But the Bangkok-based supplier group reported a $19 million share of loss from the seafood chain in the first nine months of 2023.

The supplier had announced this January that it will divest from Red Lobster by the end of 2024 due to “prolonged negative financial contributions to Thai Union and its shareholders.”
Red Lobster, the largest seafood chain in the world, opened its first restaurant in Lakeland, Florida on 1968.
It has since owned at least 646 outlets across the United States.