A massive restaurant chain is now closing locations in New Jersey after the company revealed plans to restructure through bankruptcy.
Nearly 90 Red Lobster locations are closing due to financial hardship.
The popular seafood chain filed for bankruptcy last month after the company revealed it had over a billion dollars in debt.
While the number of restaurants the company plans to shutter continues to change, several states are finalizing their closures.
A new round of closures could have three locations in New Jersey permanently shuttered, reported News12 New Jersey.
This includes the Red Lobster at 4411 Black Horse Pike in Mays Landing.
Another location at 3003 Route 130 South in Delran is set to close.
And the restaurant at 211 Route 17 South in Paramus will close as well.
Red Lobster executives have said the restaurant chain’s footprint is “bloated” though it still plans to survive bankruptcy.
This includes the Red Lobster at 4411 Black Horse Pike in Mays Landing.
Another location at 3003 Route 130 South in Delran is set to close.
And the restaurant at 211 Route 17 South in Paramus will close as well.
Red Lobster executives have said the restaurant chain’s footprint is “bloated” though it still plans to survive bankruptcy.
Despite Red Lobster being an American seafood institution since its 1968 launch, financial pitfalls have taken over.
Back in 2020, the Thai Union Group purchased a 49% majority stake in the chain from Golden Golden Gate Capital for an undisclosed amount of money.
At this time Red Lobster reported record-breaking profits and raked in $6.5 billion for the year.
But things took a turn last year when the company held its Endless Shrimp promotion, reports The US Sun.
This allowed customers to order as much shrimp as they could eat for just $20.
Being careful about the price point it offered to customers, the company raised the price to $25 as the promotion’s popularity grew.
By 2023, the Endless Shrimp promotion had become a permanent part of the menu.
But the offer eventually became too popular, resulting in a companywide loss of $11 million dollars.
The shrimp promotion has already come to an end at some locations.
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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.
Also Read: Retirees Will Now Receive More Money For Social Security
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