Red Lobster plans to close two Alabama restaurants and several other locations nationwide following its 2024 bankruptcy filing.
Red Lobster is trimming its national footprint by closing two Alabama locations on September 6, including the Montgomery and Huntsville restaurants. These closures are part of a broader strategy to stabilize the company after filing for Chapter 11 bankruptcy in 2024. The chain has reduced its total number of restaurants to approximately 540, down from over 700 before the bankruptcy. Significant losses from the 'Ultimate Endless Shrimp' promotion and ongoing construction in high-traffic areas like Times Square contributed to the decision to close select locations. The company also closed its oldest continuously operating restaurant in Tallahassee, Florida, in May. Despite these closures, the chain remains committed to long-term growth and stability. Red Lobster continues to evaluate individual restaurant performance and lease terms to ensure the company's long-term success.