Red Lobster closes Georgia locations amid bankruptcy filing

• Red Lobster closes locations in Georgia.
• About 10% of the branches are affected.
• The chain has filed for bankruptcy.

Red Lobster is temporarily closing some of its restaurants in Georgia and other states.

These closures include about 10% of its restaurants in the state, according to from the chain’s official website.

Customers have expressed dismay at Red Lobster’s decision, hoping the restaurants will re-open soon.

Before you continue reading, we invite you to listen to the new Tu Mundo Hoy podcast by clicking HERE.

Click on the image to listen to the podcast

Red Lobster closes locations in Georgia

Two of the affected locations in Georgia are those at 1956 W. Broad St., Athens; 1050 Holcomb Bridge Road, Roswell; and 2105 Veterans Blvd., Dublin.

According to 11 Alive, at least 48 Red Lobster restaurants nationwide have been temporarily closed.

This is while the restaurant’s aftermarket supplier conducts an online auction of the chain’s inventory, including kitchen equipment and furniture.

These moves come amid reports suggesting that Red Lobster has been seeking a buyer to avoid bankruptcy.

Financial challenges and business considerations facing the popular restaurant chain

The future of the company and the «temporarily closed» locations are unknown at this time, according to 11 Alive.

The outlet contacted the franchise for more information on these closures and their possible impacts on staff.

Business Insider has reported that Red Lobster is considering filing for bankruptcy.

Meanwhile, Thai Union, a minority investor in Red Lobster, announced in January its intention to exit the seafood chain due to financial challenges.

Red Lobster was founded in 1968

Thai Union CEO, Thiraphong Chansiri, explained that «the Covid-19 pandemic and other factors have negatively impacted Red Lobster and its shareholders.»

The restaurant, founded in 1968 in Florida, has grown to about 650 locations nationwide under the ownership of General Mills since 1970.

It is important to note that the closures occurred on May 13, leaving thousands of Georgia customers , according to ‘11 Alive.

The chain began closing restaurants around the country in April.