BUFFALO, N.Y. — With rumors of the restaurant on the brink of bankruptcy, Red Lobster posted on their website that four locations in Western New York are temporarily closed.
The seafood chain is reportedly looking to sell its restaurants in an effort to avoid filing bankruptcy, according to CNBC.
The three locations in Western New York are on Maple Road in Amherst, Transit Road in Williamsville, E. Fairmount Ave. in Lakewood and McKinley Parkway in Blasdell.
The location at the Millcreek Mall in Erie, PA is also temporarily closed.
More than 80 Red Lobster locations in at least 27 states were listed as "temporarily closed" on the restaurant's website.
CNBC reports the chain had been considering filing for bankruptcy because sales have been slow and dealing with costly leases.
There's no word on if the closures are permanent. However, an auction firm has been hired to auction off items from inside the Amherst restaurant already. Tagexbrands.com auctions are live and will end on Thursday, May 16, 2024.
"People have heard about the closure of select Red Lobsters. TAGeX Brands is proud to launch the largest restaurant liquidation EVER through its online auction marketplace," The company's CEO Neal Sherman said on LinkedIn Monday.
While the auction only lists 48 locations, more than 80 Red Lobster stores nationwide were listed as "temporarily closed" on the restaurant's website on Monday.
2 On Your Side has messaged Red Lobsters' media representatives to find out more information about closures and what folks with gift cards can do, but we have not heard from them.
We did reach out to the Red Lobster located in Niagara Falls, Ontario. That location is still open and they said they will take the gift cards. A worker told 2 On Your Side that they will verify the amount on the card and the amount on the card will be converted to Canadian dollars (cash)to pay the bill.