Red Lobster to Close Another Metro Atlanta Location Amid Bankruptcy

Red Lobster, the popular seafood chain, is set to close another location in metro Atlanta. According to recent court filings, the restaurant chain, which filed for Chapter 11 bankruptcy in May and closed over 100 locations across the country, including Athens, Roswell, and Dublin in Georgia, now plans to shut down its Jonesboro restaurant at 6550 Tara Blvd. by the end of August.

The news comes as Red Lobster exercises its rights to leases at 23 locations, including the Jonesboro spot, as mentioned in the documents filed on Thursday in the U.S. Bankruptcy Court in Florida. The chain has requested a court hearing for August 29th to discuss the closures.

Previously, in June, the Tara Blvd. location was listed among the restaurants at risk of closure. However, it seems that other locations, such as Columbus, Rome, and Smyrna, are still operating as of August.

Red Lobster, which was established in 1968, once boasted around 650 restaurants across the United States and internationally. However, last year, the chain faced financial challenges, reporting $11 million in losses in the third quarter after permanently adding its endless shrimp deal to the menu. These struggles continued into the fourth quarter of 2023, with reported losses of $12.5 million.

Despite these closures, Red Lobster remains committed to serving seafood lovers across the country and is working towards restructuring its operations through the bankruptcy proceedings.