Why is Red Lobster closing? See how many locations are affected in Mississippi

Red Lobster has closed its Jackson location as part of closures announced of 48 restaurants across 27 states, although the restaurant never reopened following being closed for renovations in July 2023.The Red Lobster at 6357 Interstate 55 North Frontage Road is officially no longer taking orders from patrons. The other closest location is in Meridian at 201 South Frontage Road.

Along with the closures, the equipment from more than 50 locations will go on auction this week. No equipment from the Jackson location will be auctioned. Winners of the auction will receive all the equipment from the individual locations.

More: Is Red Lobster filing for Chapter 11 bankruptcy? How it could affect Mississippi restaurants

Here is what we know about the closures.

Why is Red Lobster closing so many stores?

According to a report from Bloomberg, the seafood restaurant considered filing for Chapter 11 Bankruptcy.

The company had been getting advice from law firm King & Spalding as it looked to shed some long-term contracts and renegotiate leases, Bloomberg reported, noting that Red Lobster’s cash flows had been weighed down by leases and labor costs, among other issues.

Red Lobster ultimately suffered its biggest losses with its “Ultimate Endless Shrimp” promotion. What started as a $20 promotional item became a $25 permanent menu item. The promotion ended up becoming an $11 million loss for the restaurant in the third quarter of 2023.

When was Red Lobster started?

Red Lobster started in 1968 in Lakeland, Florida, by Bill Darden and Charley Woodsby. After going through several changes in ownership, it is now owned by Thai Union Group. In November, the parent company said the chain was headed toward a $20 million loss for 2023.

How many Red Lobster locations are in Mississippi?

Locations in D’Ilberville and Hattiesburg are listed as “temporarily closed.” That leaves the only open locations in the state in Meridian, Southaven and Tupelo.