CNN reported last week that court filings revealed a list of locations that are in danger of being closed if they fail to renegotiate their leases. Fortunately, no locations in Middle Tennessee were found on the list.
According to Restaurant Business Online, in recent years, the seafood chain has faced challenges due to leadership issues and strategic missteps, despite having approximately 600 locations throughout the United States.
Red Lobster’s $20 all-you-can-eat shrimp deal gained immense popularity among customers last summer. However, the company had to bear a significant cost of over $11 million in just one quarter due to this offer.
According to CNN, the restaurant chain has revealed that it has accumulated more than $1 billion in debt while having only less than $30 million in cash available. To remain operational, the chain has decided to sell its business to its creditors and obtain funding through this process.
Red Lobster has identified the locations that are at risk of shutting down. In May, some of the restaurants on the list have already closed. The location in Northgate Mall in Chattanooga is the only one in Tennessee that is in danger of closing. The complete list can be found here.
