Red Lobster to Close Dozens of Locations After Bankruptcy

Got story updates? Submit your updates here. ›

Red Lobster CEO Damola Adamolekun has announced that the popular seafood restaurant chain will be closing dozens of locations this year as part of an effort to 'slim down' the business. The company previously closed about 130 restaurants in 2024 before emerging from bankruptcy, and now plans additional closures despite seeing a 10% increase in sales from last year.

Why it matters

Red Lobster's struggles highlight the ongoing challenges facing the casual dining industry, with increased competition from fast-casual chains and the lingering effects of the pandemic. The company's decision to close more locations underscores the need for restaurants to adapt their business models and real estate footprints to remain viable.

The details

Red Lobster currently operates around 518 restaurants in the U.S., including several locations in Upstate New York. The company previously closed 130 restaurants in 2024 before emerging from Chapter 11 bankruptcy that year. Now, under new CEO Damola Adamolekun, Red Lobster is looking to further 'slim down' by closing dozens more locations, despite seeing a 10% increase in sales from last year. Adamolekun cited the need for upgrades at some locations and the fact that Red Lobster does not own the land its restaurants are on, having sold the real estate in 2014 to finance its acquisition.

• Red Lobster filed for Chapter 11 bankruptcy in 2024.
• Red Lobster emerged from bankruptcy in September 2024.
• Red Lobster closed about 130 locations in 2024.
• Red Lobster laid off about 200 restaurant employees in late 2025.

What they’re saying

What’s next

Red Lobster has not yet announced which specific locations will be closed or an exact number of closures, but the company says it is reviewing its real estate footprint and leases as part of its effort to cut costs.