Red Lobster closes 163 locations after emerging from 2024 bankruptcy

30 August 2026 · Source balance: Centre

Red Lobster, a fifty-eight-year-old casual seafood restaurant chain, closed approximately 163 locations during its Chapter 11 bankruptcy proceedings that began in May 2024. The company had held 687 leases at the time of filing but rejected many as part of restructuring. Red Lobster emerged from bankruptcy in September 2024 with 551 locations and roughly 34,000 employees. However, the company continues trimming its footprint, closing 23 additional restaurants since emerging from bankruptcy. The chain is now working to close underperforming locations and those with unsustainable lease costs. Red Lobster joins other casual dining chains facing similar pressures from rising rent, labor, and food costs—including Applebee's, Ruby Tuesday, and Red Robin. Economic analysts attribute the closures to inflation-driven cost increases, changing consumer dining habits, and an increasingly challenging environment for casual dining restaurants. The company has stated it continues reviewing its real estate portfolio to cut expenses and stabilize finances.