Amid reports of potential bankruptcy, over 80 Red Lobster locations across the United States, including two in Illinois, have been listed as “temporarily closed.” Among these closures are the Bloomingdale and Danville restaurants, according to the chain’s website as of Monday afternoon. Notably, Illinois hosts a total of 25 Red Lobster establishments, with 16 located in the Chicago area.

Financial Struggles and Bankruptcy Consideration

In mid-April, Bloomberg released a report revealing that the seafood chain was contemplating filing for Chapter 11 bankruptcy to address its financial woes. These difficulties stem partly from a reported $11 million loss in the third quarter of 2023, attributed to an unexpected surge in customers availing themselves of the “Ultimate Endless Shrimp Deal,” as highlighted in a previous report.

Challenges with Promotional Deals

Ludovic Garnier, the Chief Financial Officer of Thai Union, Red Lobster’s parent company, acknowledged the challenges faced by the chain regarding its promotional strategies. Garnier noted in a November earnings call that while the “Ultimate Endless Shrimp Deal” attracted more customers with its affordable pricing, it ultimately resulted in significant financial losses for the company. In a bid to bolster sales, Red Lobster launched distinctive advertising campaigns, including one promising 150 lucky winners a complimentary meal featuring “endless lobster for one day and one day only.” Such initiatives aimed to attract patrons and boost foot traffic to the restaurants.

Regional Impact of Closures

A list compiled by an affiliate in Maine underscored the widespread nature of Red Lobster’s closures, with more than 80 locations marked as “temporarily closed” on the chain’s website. Notably, the majority of these closures were concentrated in Florida, signaling the far-reaching implications of the chain’s financial struggles.

As Red Lobster navigates these turbulent waters, attention remains focused on its efforts to address mounting debts and restructure its operations. The closures of numerous locations across the country, coupled with ongoing discussions surrounding bankruptcy, underscore the significant challenges faced by one of America’s most prominent seafood chains.