NEW YORK (AP) — Dozens of Pink Lobster areas throughout the U.S. are on the chopping block.
Restaurant liquidator TAGeX Manufacturers introduced this week that it will be auctioning off the gear of over 50 Pink Lobster areas that have been lately closed as a part of the seafood chain’s “footprint rationalization.” The areas span throughout greater than 20 states — reducing again on Pink Lobster’s presence in cities like Denver, San Antonio, Indianapolis and Sacramento, California.
It’s unclear if Pink Lobster plans to shutter any extra eating places within the close to future. The Orlando, Florida-based firm didn’t instantly reply to The Related Press’ requests for remark.
On Pink Lobster’s web site, a handful of impacted areas have been listed as “briefly closed” or “unavailable” Tuesday morning.
Pink Lobster has been struggling for a while. With lease and labor prices piling up lately, the chain is now reportedly contemplating submitting for chapter safety. A possible Chapter 11 submitting might assist Pink Robster exit from some long-term contracts and renegotiate lots of its leases, unnamed sources accustomed to the matter advised Bloomberg Information final month.
Sustaining secure administration has additionally confirmed troublesome, with the corporate seeing a number of possession modifications over its 56-year historical past. Earlier this yr, Pink Lobster co-owner Thai Union Group, one of many world’s largest seafood suppliers, introduced its intention to exit its minority funding within the eating chain.
Thai Union first invested in Pink Lobster in 2016 and upped its stake in 2020. On the time of the January announcement on its plans to divest, CEO Thiraphong Chansiri mentioned the COVID-19 pandemic, business headwinds and rising working prices had impacted Pink Lobster and resulted in “extended unfavourable monetary contributions to Thai Union and its shareholders.”
For the primary 9 months of 2023, the Thailand firm reported a $19 million share of loss from Pink Lobster.
After which there’s been the issue of countless shrimp. Final yr, Pink Lobster considerably expanded its iconic all-you-can-eat shrimp deal. However buyer demand overwhelmed what the chain might afford, which additionally reportedly contributed to the thousands and thousands in losses.
TAGeX Manufacturers’ auctions for the greater than 50 closing Pink Lobster areas it’s dealing with liquidation for started Monday and can run by means of Thursday. The gross sales are “winner takes all” — which means that one winner will obtain everything of contents for every location. Photos on TAGeX Manufacturers’ web site point out that features ovens, fridges, bar setups, eating furnishings and extra.
TAGeX Manufacturers known as the liquidation “the biggest restaurant gear public sale occasion ever.” In a press release, founder and CEO Neal Sherman mentioned that the objective of such on-line auctions was to “forestall high-quality objects from being discarded in landfills” and as a substitute promote sustainable reuse.
As of Tuesday morning, auctions for 48 areas have been nonetheless dwell after one other 4 gross sales closed Monday, TAGeX Manufacturers mentioned through e mail.
Pink Lobster’s roots date again to 1968, when the primary restaurant opened in Lakeland, Florida. Within the many years following, the chain expanded quickly. Pink Lobster at present touts greater than 700 areas worldwide.
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