In a move to combat its ongoing financial difficulties, popular seafood chain Red Lobster has announced the closure of more than 50 of its locations, including seven restaurants across Maryland and Virginia. The closures, which represent a fraction of Red Lobster's approximately 700 locations, come as the chain seeks to streamline its operations and navigate through its current challenges.

Restaurant liquidator TAGeX Brands recently revealed plans to auction off the equipment from the recently closed Red Lobster locations as part of the chain's "footprint rationalization." These closures impact various areas across more than 20 states, including cities like Denver, San Antonio, Indianapolis, and Sacramento.

While it remains uncertain whether Red Lobster plans to shutter additional restaurants in the near future, the company has yet to respond to requests for comment from The Associated Press.

On Red Lobster's website, a few affected locations were listed as "temporarily closed" or "unavailable" as of Tuesday morning, causing concern among seafood enthusiasts.

The challenges faced by Red Lobster have been mounting for some time. Rising lease and labor costs have contributed to the chain's increasing financial strain, leading to recent reports that Red Lobster is considering filing for bankruptcy protection. Sources familiar with the matter suggest that a potential Chapter 11 filing could help the company escape long-term contracts and renegotiate leases.

Furthermore, stable management has proven to be a challenge for Red Lobster, as the chain has experienced multiple ownership changes throughout its 56-year history. Earlier this year, Thai Union Group, one of the world's largest seafood suppliers and a co-owner of Red Lobster, announced its intention to divest its minority investment in the dining chain. CEO Thiraphong Chansiri cited the impact of the COVID-19 pandemic, industry headwinds, and rising operating costs as factors behind Red Lobster's prolonged negative financial performance.

The expansion of Red Lobster's famous all-you-can-eat shrimp deal last year also backfired, as customer demand exceeded what the chain could financially sustain. This, along with other factors, resulted in significant losses for the company.

TAGeX Brands has begun the auctioning process for the equipment of the more than 50 closing Red Lobster locations. The auctions, which kicked off on Monday, will continue until Thursday. The unique "winner takes all" format means that one winner will acquire all the contents of each location, including ovens, refrigerators, bar setups, and dining furniture. TAGeX Brands has referred to this liquidation event as the "largest restaurant equipment auction ever," with a focus on promoting sustainable reuse and preventing high-quality items from ending up in landfills.

Red Lobster's roots trace back to 1968 when the first restaurant opened in Lakeland, Florida. Over the years, the chain experienced rapid expansion, becoming a familiar name in the seafood industry.

As Red Lobster continues to navigate through its financial struggles, the closure of over 50 locations underscores the challenges faced by the beloved seafood chain. Customers and industry observers eagerly await further updates regarding the future of Red Lobster and its plans for recovery.