Amidst its ongoing financial struggles, the seafood restaurant chain Red Lobster has abruptly closed at least 48 of its restaurants, according to a restaurant liquidator.
TAGeX Brands is conducting an online auction of Red Lobster restaurant inventory, including kitchen equipment, furniture, tables, and chairs.
According to company founder Neal Sherman, the auction will begin Monday and continue through Thursday.
Among the Red Lobster locations to be listed as “temporarily closed” on its website include some in Buffalo, Jacksonville, Orlando, and more, CNN reported.
In total, the company has around 650 locations and has been considering filing for bankruptcy protection, according to recent reports.
The mass closure of restaurants marks a first for Red Lobster in its more than 50-year history. However, with recent struggles, including a drop in demand, corporate mismanagement, and inflation, the chain has begun to decline.
The restaurant has also had to face a changing market, with more people flocking to fast-casual chains like Chipotle and quick-service chains like Chick-fil-A.
As the two markets grew, casual dining slipped from 36% of total restaurant industry sales in 2013 to 31% in 2023, according to the restaurant research firm Technomic.
Red Lobster brought in Jonathan Tibus as its new CEO in March, and many believe it is a sign of an impending bankruptcy filing, as he is considered an expert in developing and implementing restructuring plans.
Still, no bankruptcy filing has been put forth at this time.