Red Lobster Bankruptcy Plan To Include Closure of Two Austin Locations
Iconic seafood restaurant chain, Red Lobster, struggling under a vast load of debt, filed for bankruptcy recently. The last two establishments in Austin are speculated to be soon shutting down, tied to the company’s bankruptcy plan, according to recent findings.
Last Two Austin Locations On The Chopping Block
The two remaining Austin restaurants, located at 3815 S. Lamar Blvd. and 109 W. Anderson Lane, are among several dozen across the country earmarked for potential closure as part of the company’s insolvency strategy. If these closures proceed, Red Lobster’s last outpost in the Austin area would be the Round Rock branch located at 2702 Parker Drive.
Treasured Seafood Chain Swimming In Debt
Red Lobster’s bankruptcy filing arrived just this May, following word from the company that it’s been grappling with “more than $1 billion in debt and less than $30 million in cash on hand.” To remain solvent, the beloved seafood chain is looking to negotiate a sale to its lenders.
Red Lobster’s Reach in Texas
The potential closure of the two Austin locations follows the trend of other Texas-based Red Lobster branches. Other sites in the Lone Star state that could face the shutter include three in San Antonio and restaurants in San Marcos, Houston, Frisco, Corpus Christi, among others.
Impact Of Closures
The potential restaurant closures reveal the heavy impact of the financial struggles on the Red Lobster brand. Prior to its bankruptcy filing, Red Lobster managed almost 600 restaurants globally, closing about 50 shortly before declaring insolvency.
The Future of Red Lobster
The renowned seafood chain seems to be navigating rough waters. However, the fate of these restaurants remains uncertain as the company’s bankruptcy plan awaits approval. The news marks a significant downturn for the household name, renowned for its delectable seafood dishes and iconic cheddar bay biscuits.