BURLINGTON — Red Lobster has reportedly closed dozens of restaurants across the country this week, including one in Burlington, and an online restaurant liquidator is auctioning off kitchen equipment from some of them.
The closures come after the popular seafood chain has had several years of financial struggle. It made headlines in December when it announced its Endless Shrimp deal was a major reason it reported an $11 million operating loss in the quarter. The deal, in which guests picked two types of shrimp to enjoy for as much as they could eat for $20 (later increased to $25), had been around for 18 years, but in June 2023 Red Lobster expanded it to “all day, every day” instead of just on Mondays.
Due to these financial hardships, there have been ongoing rumors that Red Lobster was considering filing for bankruptcy protection, and The Wall Street Journal reported on Tuesday that the chain is expected to file for Chapter 11 bankruptcy before Memorial Day, which is May 27.
The restaurant liquidator TAGeX Brands announced Monday it was auctioning equipment this week from 48 restaurants that have permanently closed. It said it was “the largest restaurant equipment auction ever.”
But Red Lobster’s website also lists many temporary closures, including four in North Carolina: in Burlington, Durham, Cary and Rocky Mount.
Red Lobster had 649 restaurants nationwide.
The magazine Restaurant Business reported on its website that employees said the closures were sudden and unexpected, with some waking up Monday to texts or calls from co-workers with the news that they no longer had a job. Others found out via a notification in their scheduling app.
