Red Lobster likely closing more restaurants after shuttering 130, CEO warns

Red Lobster is considering closing more locations as it continues to reevaluate its restaurant footprint in the wake of its 2024 bankruptcy.

The seafood chain shuttered roughly 130 restaurants when it went through the bankruptcy process and Red Lobster CEO Damola Adamolekun told The Wall Street Journal in an interview that the company is continuing to review its locations and leases as it considers ways to curb costs.

Adamolekun said in the interview that visits have risen, with sales up about 10% from last year, but they haven’t recovered to pre-bankruptcy levels, and many of the chain’s locations need upgrades.

“There’s a lot of positive signs, but we inherited a very damaged brand, so there’s still work to do to repair all of that,” he told the Journal.

Red Lobster filed for bankruptcy in May 2024 after it racked up steep losses amid reduced sales and losses generated from an endless shrimp deal that was originally priced at $20. 

The company is also dealing with the fallout from a 2014 move that sold off ownership of the chain’s real estate and saddled the company with lease payments.