Red Lobster closing 23 more stores, Indiana included
INDIANAPOLIS (WISH) — The ailing Red Lobster chain is closing 23 more stores nationwide, after closing dozens of stores earlier this year.
Red Lobster was a restaurant industry pioneer but has declined in recent years due to a range of factors, including corporate mismanagement, say former leaders at the chain and restaurant analysts.
At that time, Red Lobster said that it had more than $1 billion in debt and less than $30 million in cash on hand. It plans to sell its business to its lenders, and in turn, it will receive financing to stay afloat.
A recent court filing shows that Red Lobster is rejecting leases of 23 more locations by the end of the month. After closing 100 more restaurants earlier this summer, the chain will shrink to around 500 locations, a decline from 650 the company had last year.
The chain is in the process of being sold to Fortress Credit Corp, a lender experienced in restaurant management. Fortress owns chains like Krystal, Logan’s Roadhouse and J. Alexander. Red Lobster recently received a $100 million dollar loan from Fortress to stay in business.
Under previous management, Red Lobster’s culture was said to have turned toxic. Red Lobster cut costs, removed longtime suppliers and implemented strategies that backfired, such as making $20 endless shrimp a permanent menu item. The chain lost $11 million on the endless shrimp deal.
The new list of restaurants leases identified to be closed “are likely to continue to drive losses” and the company does “not anticipate needing in order to operate their business going forward and can be rejected,” the filing said.
Here is the list of the latest closures:
Arizona
-1521 S. Yuma Palms Pkwy., Yuma
Arkansas
-8407 W. Markham St., Little Rock
California
-8703 Murray Drive, La Mesa
Colorado
-4925 N. Academy Blvd., Colorado Springs
Florida
-326 Miracle Strip Pkwy., Fort Walton Beach
-5110 N. 9th Ave., Pensacola
-8909 U.S. Highway 19, Port Richey
Georgia
-6550 Tara Blvd., Jonesboro
Illinois
–1604 N. State Road 50, Bourbonnais
-902 Commons Drive, Geneva
-4625 N. Sterling Ave., Peoria
Indiana
-4353 Franklin St., Michigan City
Minnesota
-8900 Golden Valley Road, Golden Valley
-12515 Elm Creek Blvd. North, Maple Grove
Missouri
-2381 Maplewood Commons Drive, Maplewood
New York
-925 Hunts Point Ave., Bronx
-750 Upper Glen St., Queensbury
North Carolina
-304 A Western Blvd., Jacksonville
Ohio
-17227 Southpark Center, Strongsville
South Carolina
-1270 Knox Abbott Drive, Cayce
Virginia
-555 S. Van Dorn St., Alexandria
-4415 S. Laburnum Ave., Richmond
-709 Independence Blvd., Virginia Beach