Which well-known retail stores filed for bankruptcy?
Red Lobster, Walgreens, Rite Aid and many other retailers are battling with worsening financials.
Red Lobster is closing 23 more restaurants across the country — including one in Ohio — as it continues Chapter 11 bankruptcy proceedings, USA TODAY is reporting.
In a 23-page court document filed Aug. 22 in U.S. Bankruptcy Court for the Middle District of Florida, Red Lobster, based out of Orlando, said it is rejecting the leases of 23 locations, including three restaurants closing in Florida, Illinois and Virginia, two in Minnesota and New York, and one in each of the following states: Arizona, California, Colorado, Georgia, Indiana, Missouri, North Carolina, Ohio, and South Carolina.
Here’s the latest.
What Red Lobster is closing in Ohio?
According to USA TODAY, the Red Lobster location in Strongsville, a suburb of Cleveland, will close by Aug. 31. It’s the first Red Lobster location in the state to be affected by its bankruptcy.
How many Red Lobsters are in Ohio?
Red Lobster was operating 38 restaurants in 33 Ohio cities, according to a Cincinnati Enquirer article, and each location in the state was listed as “open” at that time. That state total now drops to 37.
Why did Red Lobster file for bankruptcy?
Red Lobster filed for bankruptcy on May 19, after it closed dozens of locations and announced plans to “drive operational improvements” by simplifying the business, according to USA TODAY. Court documents show the bankruptcy was primarily due to significant debt, a carousel of CEOs, an all-you-can-eat shrimp fiasco and a 30% drop in guests since 2019.
Red Lobster closures across the county
According to court documents, Red Lobster has a list of 228 rejected leases it said would keep losing money if they continue to operate as they were, USA TODAY reports. Some had already closed, meaning the company could lose 129 restaurants.
With the closure of the 23 locations listed in last week’s court filing after 106 restaurants closed earlier this summer, that total count is accurate.
List of previous Red Lobster closures
USA TODAY has a list of the previous 106 Red Lobster closures organized by state:
Alabama | Arizona | California | Colorado | Florida | Georgia | Idaho | Illinois | Indiana | Iowa | Kansas | Louisiana | Maryland | Michigan | Mississippi | Missouri | New Jersey | New York | North Carolina | North Dakota | Oklahoma | Pennsylvania | South Carolina | Tennessee | Texas | Virginia | Washington | Wisconsin
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Publish date : 2024-08-26 06:48:00
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