Red Lobster lovers will be sure to lament the recently reported closures of nearly 50 locations across the country, including three in the DMV, as the company filed for bankruptcy on May 19.
The restaurants in Laurel, Silver Spring, Gaithersburg and Columbia are all closing. There are still multiple Red Lobsters available in Prince George’s County, including one in Camp Springs and another in New Carrollton. There will be roughly 600 locations open nationally following these closures.
While some observers have blamed the brand’s recent endless shrimp promotion that cost $11 million more than it earned, others have cited burdens imposed by private finance as the reason the brand is preparing to file for bankruptcy and reorganize their business.
Thai Union, the foreign corporation that secured a majority stake in 2020, is planning to divest from Red Lobster and accept a $530,000,000 loss. It is not currently known how the bankruptcy will affect prices or service at the remaining establishments. The company estimates over $1 billion in debts and obligations and less than $30,000,000 in cash assets.
According to the company, the proceedings from bankruptcy will be used to “drive operational improvements, simplify the business through a reduction in locations, and pursue a sale of substantially all of its assets.”
We have previously covered Maryland seafood. Read more here and here. A comprehensive list of Black-owned eateries is available here.