Restaurant chain Red Lobster is closing more locations after filing for bankruptcy earlier this year.
The next two locations to close will be in New York—one in Queensbury and the other in the Bronx. These closures follow others in states like Florida, Illinois, Minnesota, and Virginia. The 56-year-old chain filed for bankruptcy in May, after announcing that many locations would be shut down.
After the COVID-19 pandemic, Red Lobster tried to attract more customers by offering a $20 all-you-can-eat shrimp deal. The company hoped this would work like value meals at fast food places, such as Wendy’s 4 for 4 or McDonald’s five-dollar meal deal.
However, the promotion led to big losses for Red Lobster. The deal became popular on social media, with customers trying to outdo each other by eating as much as possible. This wasn’t the first time the chain made a costly mistake—back in 2003, they lost millions on an all-you-can-eat crab deal when crab prices went up.
CEO Jonathan Tibus commented on the bankruptcy, saying, “This restructuring is the best path forward for Red Lobster. It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth.”