According to New York Times, its parent company Darden Restaurants announced Thursday Dec. 19 that Red Lobster locations will be shutting down for “a tax-free spin-off” or possibly be sell it off completely. One thing is for sure, though: no more Red Lobster.
Apparently, investors and analysts have pressured Darden about its future and how it planned to bring back consumers after the recession. Though it’s one of the biggest companies in the casual dining industry, with a market value of $6.7 billion, its core chains — Red Lobster being its first — have had stagnant growth.
It’s unclear when the locations would begin closing at press time.