Red Lobster has abruptly shuttered dozens of restaurants across the United States, including the last two locations operating in Dallas proper.
The chain has had a special place in Dallas history, representing one of the first seafood restaurants the city ever welcomed. Unfortunately, Dallasites will now have to travel a bit further for the chain’s famous cheddar bay biscuits.
The seafood chain closed more than 50 restaurants in over 20 states this week, and Dallas was not spared.
Both the 9069 Vantage Point Dr. location in Lake Highlands south of I-635 near the Holiday Inn Express and the 10290 Technology Blvd. restaurant in northwest Dallas near I-35E and Loop 12 have closed their doors.
Other parts of the greater North Texas region also saw their Red Lobsters shutter. Both Tyler and Longview had locations close down. However, Red Lobsters in Arlington, Denton, Duncanville, Fort Worth, Frisco, Irving, Lewisville, Mesquite, North Richland Hills, and Plano are still up and running.
News of the closures comes amid reports that the chain’s executives are thinking about filing bankruptcy. According to Bloomberg, escalating labor costs and unfavorable leases are driving the consideration. If done, the company would be permitted to continue operating while working on pairing down its debt.
In March, Red Lobster hired a new chief executive, Jonathan Tibus, who has a history of corporate restructuring. The move reportedly signaled to Wall Street that the seafood chain was flirting with Chapter 11.
Later, in April, CNBC reported that the company was actively seeking a buyer in order to avoid filing for bankruptcy.
Part of the company’s financial woes trace back to its unprofitable “Endless Shrimp” campaign. Even when the price was increased to $25, up from $22, the gimmick failed to turn a profit.
Red Lobster, which opened in 1968, now has over 700 locations across the United States, Canada, and elsewhere.
