ATLANTA — Just a couple of weeks after filing for bankruptcy, Red Lobster is looking to close several more locations across the U.S., including four more in Georgia.
The restaurant chain, which is the largest seafood chain in the world, said it has more than $1 billion in debt and plans to sell the business to its lenders.
Analysts said the reason for financial issues could be attributed to recent mismanagement, competition, and inflation.
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The restaurant chain has closed several locations across metro Atlanta already, and now CNN is reporting that Red Lobster intends to close dozens more, according to court documents.
Red Lobster, which was founded in 1968, once had around 650 restaurants in the United States and internationally.
Last year, Red Lobster reported $11 million in third-quarter losses after it added its endless shrimp deal permanently to the menu, according to ABC News. The restaurant chain later reported $12.5 million in losses in the fourth quarter of 2023.
If the court approves the plan, these Georgia locations will close:
- 2679 Adams Farm Dr., Columbus
- 6550 Tara Blvd, Jonesboro
- 700 Shorter Ave., Rome
- 2579 Cobb Parkway, Smyrna
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