Red Lobster closes multiple locations, including 4 in Colorado - Find out now.

Red Lobster files for bankruptcy and closes dozens of locations, with auctions selling off kitchen equipment. Is the Fort Collins location closing?

Red Lobster, a beloved seafood chain restaurant, has recently made headlines with the announcement of its filing for bankruptcy. The closure of numerous locations across the country has left many wondering about the future of this iconic establishment.

The company has filed for Chapter 11 bankruptcy, a strategic move to reorganize finances while still operating the business. However, the possibility of a conversion to a liquidating Chapter 7 remains if a debt repayment plan is not successfully approved.

In the wake of an $11 million loss in the third quarter of 2023, Red Lobster has faced challenges, including the unexpected success of its "Ultimate Endless Shrimp" promotion. This promotion allowed customers to enjoy unlimited shrimp for a fixed price, leading to financial strain for the company.

TAGeX Brands, a company specializing in closures and asset liquidations, has announced auctions for over 50 Red Lobster locations across the country. These auctions operate on a "winner takes all" basis, where the buyer acquires all contents of the location they bid on.

While the Fort Collins Red Lobster location at 3301 S. College Ave. remains open, four other sites in Colorado have been listed as closed on the company's website. The future of Red Lobster hangs in the balance as it navigates through this challenging period.

As the story continues to unfold, the fate of this seafood chain remains uncertain. Gabe Hauari and Chris Sims of USA Today have provided valuable insights into the ongoing developments surrounding Red Lobster's bankruptcy filing.