A Bankrupt Restaurant Is Now Closing 100 More Locations

A bankrupt restaurant is now closing 100 more locations after it already shuttered nearly the same amount just last month.

Red Lobster announced that more than 100 stores are expected to shutter after a disastrous promotion and bankruptcy filing.

The news comes after nearly 100 locations were already shuttered last month, according to bankruptcy filings submitted last week.

The documents listed roughly 228 rejected restaurant leases that Red Lobster said would continue losing money if they remained in operation.

A list of restaurants on the chopping block was also revealed, including the company’s massive restaurant in Times Square in New York City.

The landlords of that location increased the annual rent to $2.2 million, more than double what Red Lobster is believed to be paying, reported The New York Post.

Red Lobster is currently negotiating with the landlords before the lease expires on June 30.

The Times Square location is the last Red Lobster in Manhattan, according to the company’s website.

A location in Harlem closed back in May.

“This is a high-performing store and it’s not closing,” a manager told the outlet.

The chain officially filed for bankruptcy on May 19 after years of struggling due to rising food and labor costs, underperforming locations, and operating costs.

The bankruptcy filing will allow Red Lobster to continue operating while selling off most of its assets to improve the business.

“This restructuring is the best path forward for Red Lobster. It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth,” said CEO Jonathan Tibus in a statement.

“The support we’ve received from our lenders and vendors will help ensure that we can complete the sale process quickly and efficiently while remaining focused on our employees and guests.”

Red Lobster currently operates 570 locations throughout the US.

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Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois

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Market News Today - A Bankrupt Restaurant Is Now Closing 100 More Locations.
Market News Today – A Bankrupt Restaurant Is Now Closing 100 More Locations.

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.

Also Read: Retirees Will Now Receive More Money For Social Security

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Market News Today - A Bankrupt Restaurant Is Now Closing 100 More Locations.
Market News Today – A Bankrupt Restaurant Is Now Closing 100 More Locations.

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