Red Lobster staff across the country are up in arms after the seafood restaurant closed more than 50 locations without warning, leaving them out of work without warning.
The chain has “temporarily closed” locations in Buffalo, Orlando, Jacksonville and other cities, and is auctioning off kitchen equipment and furniture, according to CNN.
The brand is reportedly considering a possible Chapter 11 filing to restructure its debt, which will allow it to scrap long-term contracts and renegotiate new leases.
But it has also left its workers scrambling to find employment, with many Red Lobster employees saying they were laid off without notice.
A Tiktokker posted a stitched video that began with her talking about her day at work at Red Lobster on Mother’s Day, before complaining about being fired.
The chain has ‘temporarily closed’ locations in Buffalo, Orlando, Jacksonville and other cities
X users took to the social media platform to complain about being fired
She said in the video, posted with the caption “I got another job but still DAMN RED LOBSTER”: “Why was that my last shift working there?
‘I just received a phone call this morning saying that our location is closed.
‘Everyone knows Red Lobster was bankrupt, they don’t have money (sic) to play with and our location was… we weren’t (sic) the best location so it makes sense.
“I’m not going to lie, if you work at Red Lobster, you need to start finding something else to do.”
Another TikTokker posted a video of her sadly dancing in what appeared to be the warehouse of a Red Lobster store.
The video was posted with the caption: “Trying to laugh through the pain.”
Former Red Lobster workers also went to X to complain. One user said: ‘I’m trying so hard to put on a smile right now. I feel like I could break at any moment.
She said in the video, posted with the caption ‘I got another job but still DAMN RED LOBSTER’: ‘Why was that my last shift working there?’
Red Lobster is considering filing for bankruptcy as high costs and poor sales ruin the business.
‘What the hell will life be like? What Red Lobster did in New York is illegal. They closed their doors without prior notice. So now we are unemployed. “Life is kicking my butt.”
Another simply said: ‘The red lobster fired me this morning :(.’
A third Red Lobster employee took the news in stride, posting: “Red Lobster just fired us all without notice and closed for good LMAOO.”
The added employee responded that Red Lobster didn’t tell managers until yesterday at 8 a.m.
MailOnline has contacted Red Lobster for comment.
The fury comes after the company last year reported record losses of $11 million, which its chief financial officer attributed in part to its unlimited shrimp deal.
The chain, which began as a single restaurant in Lakeland, Florida, in 1968, has about 650 locations in nearly every state. It is famous for its cheese-flavored crackers.
News of the bankruptcy was first reported by Bloomberg, which said the restaurant chain is receiving advice from law firm King & Spalding.
The chain has closed locations throughout the United States (File image)
Red Lobster CEO Kim Lopdrup (pictured)
People familiar with the matter told the outlet that the decision had not yet been made, but that bankruptcy would allow the company to continue operating.
Red Lobster’s famous shrimp promotion came about because it wanted to attract more customers after significant losses of $5.4 million in the second quarter of 2023.
But those plans fell through as the all-you-can-eat promotion was too generous.
For just $20, diners could enjoy as much seafood as they could handle.
The ‘Endless Shrimp’ offering was initially special, but in June it claimed a permanent spot on Red Lobster’s menu. As a result, foot traffic increased by 4 percent.
More people were ordering Endless Shrimp than the company anticipated, likely because the deal went viral on social media platforms like TikTok, where people showed how much they ate to get their money’s worth.
For just $20, diners could enjoy as much seafood as they could handle, but the price later jumped to $25.
The chain, which started as a single restaurant in Lakeland, Florida, in 1968 has about 650 locations in nearly every state and its menu offers variations of shrimp-infused dishes.
‘For those who have been to the United States recently, $20 was very cheap. And the reason for this promotion was to say that we knew the price was cheap, but the idea was to attract more traffic to the restaurants,” CFO Ludovic Garnier said in November.
“But what differs from our expectations is that the proportion of people who selected these promotions was much higher compared to expectations,” he added.
Eventually, the company raised the price of its Endless Shrimp to $25 in an attempt to recoup some of the losses.
Red Lobster has had several owners in recent years. It was previously owned by restaurant group Darden, which also owned Olive Garden, but was acquired by Golden Gate Capital in 2014.
In 2020 it was bought by Thai Union, which this year said its “current financial requirements no longer align with Thai Union’s capital allocation priorities.”