Red Lobster ‘abruptly’ closed this Idaho restaurant. Two remain as bankruptcy proceeds
Red Lobster has hit choppy waters, in case you haven’t heard.
In the latest twist, the ubiquitous chain filed for Chapter 11 bankruptcy protection Sunday, according to a news release.
What does it all mean for Idaho? Before the financial shipwreck occurred, Red Lobster operated three locations in the Gem State.
Two of those remain afloat. Restaurants are open in Boise at 550 N. Milwaukee St. and in Coeur d’Alene at 212 E. Neider Ave.
But the Lewiston location at 2115 Thain Grade Road? It closed. That happened last week as part of an auction that liquidated assets at more than 50 Red Lobsters nationwide. The Lewiston closure happened “abruptly,” according to Washington-based Big Country News, which reported that employees were notified the day it happened.
Red Lobster’s woes are being blamed on multiple factors. “A disastrous ‘endless shrimp’ promotion and a lease-back agreement orchestrated by Red Lobster’s previous private equity owners, Golden Gate Capital, contributed to its demise,” according to CNBC.
Whatever the case, the 56-year-old brand is looking for a buyer.
For now, Red Lobster operates 551 locations in the United States and 27 in Canada, according to CNBC, which adds that it “closed 93 underperforming locations on May 13 and is asking the bankruptcy court to reject 108 of its leases to further slim down its footprint. The company has 36,000 employees, most of whom work in part-time roles.”