Red Lobster Closes 36 Restaurants, Cutting Footprint 7%

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2▲0 ▼1Impact / 5
Summary · why it matters

Red Lobster has closed 36 restaurants, leaving 484 locations listed as of September 8, 2026, a 7% reduction from the 520 locations the chain had at the end of 2025, according to Technomic data reported by National Restaurant News. At least 20 of those closures occurred in 2026, including the Times Square flagship in New York, which closed in June after 23 years, and a Tallahassee, Florida location that closed in May after 56 years. The closures continue a restructuring that began when Red Lobster filed for Chapter 11 bankruptcy protection in May 2024 after accumulating nearly $300 million in debt and shutting down approximately 130 restaurants, with court filings citing rising operating costs, declining consumer traffic, and significant financial losses. The company's $20 Ultimate Endless Shrimp promotion was identified as a major financial problem, contributing to an $11 million quarterly loss, and in May 2026 Red Lobster's creditors sued former CEO Paul Kenny and Thai Union Group, the company's former investor and seafood supplier, over the promotion. Red Lobster emerged from bankruptcy under new ownership by RL Investor Holdings LLC, and Adamolekun was appointed CEO in August 2024; systemwide sales declined 6.2% in 2025, and the company continues to evaluate its real estate portfolio, with additional closures possible at underperforming locations.

Impact on assets 2

Consumer Staples▼ · 1 stocks
Thai Union Group PCL
TU
▼ NegativeRegulationrelevance

Red Lobster's creditors sued Thai Union Group, its former investor and seafood supplier, over the Ultimate Endless Shrimp promotion.

Consumer Discretionary▲ · 1 stocks

Off-coverage companies 4

Red LobsterPrivate▼ Negative
Capitalrelevance

Red Lobster closed 36 restaurants (7% of footprint) amid its bankruptcy restructuring, with systemwide sales down 6.2% in 2025 and more closures possible.

National Restaurant NewsPrivate± Mixed
relevance

RL Investor Holdings LLCPrivate± Mixed
relevance

TechnomicPrivate± Mixed
relevance

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