Red Lobster Closes Multiple Locations Amid Bankruptcy

Red Lobster is continuing to reduce its restaurant footprint in 2026, with numerous locations slated for closure as the company navigates its post-bankruptcy restructuring. The seafood chain's presence has significantly diminished, shrinking to approximately 540 restaurants nationwide from over 700 prior to its Chapter 11 bankruptcy filing in May 2024. This financial restructuring followed a period where a popular "Ultimate Endless Shrimp" promotion contributed to an estimated $19 million loss, prompting the closure of more than 100 locations in 2024. Despite these challenges, Red Lobster announced earlier this week the return of the "Ultimate Endless Shrimp" promotion, following a successful test run in April, indicating a strategic effort to revive customer interest and revenue streams. The closures have impacted various communities, with some locations holding historical significance. Notably, Red Lobster's oldest continuously operating restaurant, situated in Tallahassee, Florida, ceased operations in May after 56 years. The company acknowledged this site as "a special place in Red Lobster's history" and a "meaningful part of the community for decades." On the same day as the Tallahassee closure, the chain also shuttered restaurants in Chambersburg, Pennsylvania; Overland Park, Kansas; and Independence, Missouri. Further reducing its urban presence, Red Lobster closed its Times Square restaurant in Manhattan in June after 23 years of operation. This closure left Manhattan without any Red Lobster establishments. The company cited ongoing construction that impeded access and foot traffic, coupled with the building's planned conversion into residential apartments, as primary reasons for the Times Square decision. Red Lobster described the Times Square location as "an important chapter in Red Lobster's history" and characterized the closure as "a difficult decision." Employees affected by the closures in Tallahassee and Times Square were reportedly offered transfer opportunities and additional compensation to facilitate their transitions. As of 2026, specific locations confirmed for closure by Inc. include: 582 7th Avenue, New York, NY 10036; 300 Eastdale Circle, Montgomery, AL 36117; 1030 Montgomery Highway, Vestavia Hills, AL 35216; 2583 N. Monroe Street, Tallahassee, FL 32303; and 935 Wayne Avenue, in an unspecified Pennsylvania location. The company's strategic decisions reflect a broader effort to streamline operations and address financial challenges stemming from market shifts and operational costs.