From staff reports Struggling Red Lobster, the biggest seafood restaurant chain in the U.S., has abruptly closed dozens of its approximately 650 restaurants, including three in Oklahoma.
As many as 87 restaurants have been shuttered in at least 27 states and are listed on Red Lobster’s website as temporarily closed, according to various news reports. Employees at several locations told reporters they received no advance notice.
The restaurants include those in Lawton, Oklahoma City and Stillwater.
TAGeX Brands reported it is conducting an online auction of Red Lobster kitchen equipment, furniture and other contents for at least 50 closing restaurants, according to TAGeX founder Neal Sherman.
Red Lobster did not respond to CNN’s requests for comment.
The company reportedly is preparing to file a Chapter 11 bankruptcy petition (reorganization) before Memorial Day. The chain hired a restructuring expert as its chief executive, an indicator of impending bankruptcy.
Red Lobster was a restaurant industry pioneer but has declined in recent years due to a range of factors, including corporate mismanagement, restaurant analysts and former leaders at the chain claim. One reason for its downfall was an all-youcan eat shrimp deal that executives hoped would turn the chain around but instead contributed to millions of dollars in losses.
According to The Wall Street Journal, market research firm Technomic ranked Red Lobster as the 41st largest U.S. restaurant chain by domestic sales last year, down from 24th in 2013.