A massive restaurant now plans more closures in California after grappling with a debt crisis that has led the company to file for bankruptcy.
Red Lobster, which brought affordable shrimp and lobster to middle-class America and grew to become the largest seafood restaurant chain in the world, filed for bankruptcy last month.
Red Lobster said that it had more than $1 billion in debt and less than $30 million in cash on hand.
The company plans to sell its business to its lenders, and in turn, it will receive financing to stay afloat.
Part of its plan is to close some locations of its nearly 600 restaurants in the meantime.
A few weeks prior to its bankruptcy, it abruptly closed around 50 locations across the United States.
The new list of locations in danger of closing was revealed in court filings last week, and all could be shuttered if they can’t renegotiate their leases.
Below is a list of Red Lobster locations that may close in California if they are unable to come to a lease agreement:
- 6231 Sunrise Blvd, Citrus Heights
- 503 E. Calaveras Blvd., Milpitas
- 928 W. Huntington Ave., Monrovia
- 4095 Century Blvd, Pittsburg
- 1720 N Main Street, Salinas
- 195 E. Hospitality Lane, San Bernardino
- 2040 Aborn Road, San Jose
- 2283 W. March Lane, Stockton
- 1180 Admiral Callaghan Lane, Vallejo
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Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois
Other Economy News Today
An unexpected restaurant now abruptly closes 7 locations in one state after revealing plans to shutter a total of 36.
TGI Fridays is closing a total of seven restaurants in one state as part of the company’s ongoing growth strategy.
This comes after the chain abruptly closed 36 locations across 12 states in at the beginning of the year, per The-Sun.
The restaurant chain will pull the plug on seven locations across the state of New Jersey in the coming weeks.
Today, Fridays will welcome in famished diners at its location in Brick for the final time.
“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Weldon Spangler, CEO of TGI Fridays earlier this week.
“We are at the helm of a pivotal moment that will allow us to explore boundless advancement, expansion, and innovation to keep delivering ‘That Fridays Feeling’ that our fans know and love.”
Before the closures, TGI Fridays had about 270 US locations, according to the company’s website.
“As part of the store closures, TGI Fridays is offering more than 1,000 transfer opportunities, which represents over 80% of total impacted employees,” the company previously said in a statement.
“Our top priority has always been delivering a superior experience for each and every TGI Fridays guest, and we’ve identified opportunities to optimize and streamline our operations to ensure we are best positioned to meet – and exceed – on that brand promise,” said Ray Risley, US president and chief operating officer, in the release.
Eight other locations were sold to former CEO Ray Blanchette, a longtime stakeholder who will acquire the previously corporate-owned restaurants.
The sale comes as major changes have been made to the brand’s leadership, including the news of Weldon Spangler being made CEO.
“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Spangler in a statement.
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