US chain pressured to close another 23 branches (it has already closed more than 100)

Red Lobster is one of the most famous restaurant chains in the United States. which recently announced that due to financial difficulties it has had to close more than 100 branches and will soon add 23 more.

It is worth remembering that The company filed for bankruptcy in May, as indicated by the laws according to Chapter 11. Since then, the executive director of the chain, Jonathan Tibus, has indicated that they are working to restructure the business, as recalled by the media The Sun.

In this regard, they announced that they would reject lease contracts in certain areas because, after an analysis, the chain considers them to be unprofitable. It is precisely for this reason that 23 of its branches will be permanently closed on August 31.

According to what was announced by the company, The restaurants that will no longer be available are located in 14 states. The areas that will be most affected will be Virginia, Florida and Illinois, as each of these states will lose three restaurants.

Customers of this chain are being invited to enjoy the last days that the affected venues will be open.

Red Lobster still facing serious financial problems

The announcement of 23 new closed branches joins the more than 100 that, since last May, The Rob Lobster restaurant chain has closed nationwide.

The closure of branches has occurred gradually. It is estimated that at least seven stopped operating in July in Alabama, Arizona, California, Colorado, Texas and Florida.

Company representatives have assured that the reason why have not been able to heal their operations has been the economic environment and their all-you-can-eat shrimp offering. In fact, in their financial report for the third fiscal quarter of last year they announced that they had lost US$11,000,000 precisely since they had launched that promotion that was intended to attract more customers to their restaurants.