Even a nod from Beyoncé couldn't rescue this floundering seafood chain.
Neal Sherman, founder and CEO of liquidation firm TAGeX Brands, took to LinkedIn on May 13 to announce the auctioning of assets from various Red Lobster locations nationwide.
These auctions aim to liquidate items from multiple restaurants across several states, encompassing furniture, fixtures, and equipment.
"People have been informed about the closure of select Red Lobster locations. TAGeX Brands is thrilled to announce the launch of the largest restaurant liquidation EVER through our online auction marketplace," Sherman shared.
He mentioned that the approach to these closures differs from previous ones, as each auction winner will take possession of all the listed items from the location. "WINNER TAKES ALL," he emphasized.
A dedicated auction site on the TAGeX website has been active since May 13, with over 50 locations up for auction, closing on Thursday, May 16.
Winning bidders are required to pick up their purchases, including all restaurant contents, the next day, or risk forfeiture without a refund.
The website currently lists around four dozen ongoing auctions across 21 states, featuring items like high-performance ovens, refrigerators, cooking and dining setups, among others.
Red Lobster representatives did not respond immediately to YEPPOST.com's request for comment regarding potential reopening plans for these closed locations.
Established in 1968, Red Lobster is America's largest seafood chain with over 700 locations worldwide. Although the auctioned restaurant contents represent a fraction of its establishments, financial challenges have recently impacted the company.
In November 2023, Red Lobster raised the price of its "Ultimate Endless Shrimp" deal to $25 due to overwhelming demand for the unlimited offering, which unfortunately led to a decrease in the company's profits.
In January, investor Thai Union announced its intention to divest from Red Lobster, citing a $19 million loss in the first nine months of 2023 attributed to factors like the Covid-19 pandemic, ongoing industry challenges, higher interest rates, and increased material and labor expenses.
Thiraphong Chansiri, CEO of Thai Union Group, stated in a press release, "After careful analysis, we have determined that Red Lobster's financial needs no longer align with our investment priorities, and we are therefore seeking to exit our minority stake."
By April, CNBC reported that Red Lobster was exploring bankruptcy as a strategy to restructure its debt and terminate costly long-term leases. However, the company ultimately pursued a buyer to avoid bankruptcy altogether.
Fans on social media, especially on X, have been reacting to the closure news by sharing images of closure notices, making jokes about endless shrimp, expressing sorrow over Cheddar Bay Biscuits, and other nostalgic sentiments.
"This Red Lobster situation is hitting me hard," lamented one fan, adding weary-face emojis to underscore their feelings.