Red Lobster plans to close 23 locations nationwide by Saturday, including the one at 709 Independence Boulevard in Virginia Beach. Three remain in Virginia Beach, Hampton and Chesapeake.
This is part of the restaurant chain’s bankruptcy proceedings filed in May. CNN reported that Thai Union Group, a global seafood supplier and Red Lobster’s parent organization, has faltered because of mismanagement, competition, inflation and factors such as losing $11 million on its “Endless Shrimp” promotion.
Fortress Credit Corp. gave the popular seafood company a $100 million loan to maintain its business and recently announced that it will appoint the former chief executive of P.F. Chang’s, Damola Adamolekun, as Red Lobster’s new chief executive officer after the bankruptcy.
Red Lobster rejected the new leases of nearly two dozen stores in a recent court filing. More than 100 stores closed earlier this summer. After the latest round, the chain will have about 500 outlets left, according to CNN.com.
Two other Virginia sites were part of the latest closures: 555 S. Van Dorn St., Alexandria and 4415 S. Laburnum Ave., Richmond.
