Red Lobster might close more restaurants if it can’t renegotiate its leases, as per bankruptcy documents filed last week.
The company identified 228 leases that are projected to keep losing money if operations continue unchanged. This list includes some of the restaurants that have already shut down, according to Restaurant Business.
As of May 22, the company’s website listed 99 locations closed across 28 states, with some auctioning off their kitchen equipment online. This puts an additional 129 restaurants at risk of closing.
Among the 228 rejected leases is Red Lobster’s iconic Times Square location. However, the New York Post reported that efforts are being made to keep it open. The property owners at 5 Times Square are asking for an annual rent of $2.2 million for the 16,482-square-foot space, which Red Lobster has occupied for 22 years, according to the Post.
The company’s bankruptcy filing in the Middle District of Florida outlines Red Lobster’s struggles, including a 30% drop in guests since 2019. In a 124-page document obtained by USA TODAY, Red Lobster CEO Jonathan Tibus explains the reasons behind the bankruptcy filing and why he supports the decision.
“Recently, the debtors have faced a number of financial and operational challenges, including a difficult macroeconomic environment, a bloated and underperforming restaurant footprint, failed or ill-advised strategic initiatives, and increased competition within the restaurant industry,” Tibus stated in the bankruptcy document.
USA TODAY reached out to Red Lobster for comment, but they did not respond in time for publication.
Red Lobster Locations That Could Close
Here’s the complete list of the 228 rejected leases Red Lobster listed in its bankruptcy documents, including some restaurants that have already closed.