Restaurant liquidator TAGeX Brands announced this week that it would be auctioning off the equipment of over 50 Red Lobster locations that were recently closed as part of the seafood chain's “footprint rationalization.” The locations span across more than 20 states — cutting back on Red Lobster's presence in cities like
It's unclear if Red Lobster plans to shutter any additional restaurants in the near future. The
On Red Lobster's website, a handful of impacted locations were listed as “temporarily closed” or “unavailable” Tuesday morning.
Red Lobster has been struggling for some time. With lease and labor costs piling up in recent years, the chain is now reportedly considering filing for bankruptcy protection. A potential Chapter 11 filing could help Red Robster exit from some long-term contracts and renegotiate many of its leases, unnamed sources familiar with the matter told
Maintaining stable management has also proven difficult, with the company seeing multiple ownership changes over its 56-year history. Earlier this year, Red Lobster co-owner
For the first nine months of 2023, the
And then there's been the problem of endless shrimp. Last year, Red Lobster significantly expanded its iconic all-you-can-eat shrimp deal. But customer demand overwhelmed what the chain could afford, which also reportedly contributed to the millions in losses.
TAGeX Brands' auctions for the more than 50 closing Red Lobster locations it's handling liquidation for began Monday and will run through Thursday. The sales are “winner takes all" — meaning that one winner will receive the entirety of contents for each location. Images on TAGeX Brands' website indicate that includes ovens, refrigerators, bar setups, dining furniture and more.
TAGeX Brands called the liquidation “the largest restaurant equipment auction event ever.” In a statement, founder and CEO
As of Tuesday morning, auctions for 48 locations were still live after another four sales closed Monday, TAGeX Brands said via email.
Red Lobster's roots date back to 1968, when the first restaurant opened in
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