The pandemic and the ongoing economic crisis have pushed even the world’s largest companies to the brink of bankruptcy. The famous US restaurant chain Red Lobster has gone bankrupt.
The famous restaurant chain Red Lobster is reducing its locations across the US due to economic difficulties. The company has filed for bankruptcy to cope with declining customers and competitive pressure.
The world-famous US restaurant chain Red Lobster, which has been struggling to stay afloat for a year, announced its bankruptcy after failing to overcome financial difficulties.
Closing its branches one by one
Although it is the number one seafood restaurant, Red Lobster has filed for bankruptcy due to declining customers and competitive pressure.
Red Lobster will try to avoid being affected by the economic crisis in the country by reducing its restaurants across the US. In addition to its 17 restaurants in Florida, the company has started to close its branches in other states.
In the company’s bankruptcy filing in Florida on May 26, it announced that they have experienced a 30 percent decrease in customers in the last 5 years.
Restaurants will be kept to a certain number
With Red Lobster’s bankruptcy filing, the button has been pressed for the closure of branches in 27 states. The company has embarked on a wide-ranging change process, with 99 stores listed as temporarily closed on its website. The company announced that the kitchen equipment in the closed restaurants will be auctioned off.
