Tagex Brands, a company that handles restaurant liquidation auctions, told ABC News that Red Lobster recently contacted them to auction off items from 52 locations that will be closing.that the company is now expected to file for bankruptcy "as early as next week," according to people familiar with the matter.
Ludovic Garnier, Chief Financial Officer for Thai Union Group, told ABC News this week, "Something which was different from our expectation is the proportion of the people selecting this promotion was much higher compared to expectation." In this July 24, 2014, file photo, a seaside shrimp combo dish is shown at a Red Lobster restaurant in Yonkers, New York.Financial reporter and affordable lifestyle expert Jennifer Streaks explained that because "consumers now are looking for value when they're going outside of the home" she thinks "consumers really ate more than Red Lobster could afford."
With inflation prompting more Americans to pinch pennies, experts are seeing consumers pivot to restaurants that can offer good value for price, and fast casual chains are seeing a boost in popularity. "Red lobster is not a fast casual environment. It may be fast seafood, but seafood is still expensive dining experience," Streaks added.