Red Lobster closures shrink chain to 484 sites

Red Lobster closures have reached 36 US restaurants in 2026, shrinking the seafood chain to 484 locations as new owner Fortress Investment Group keeps trimming its footprint.

The closures span Alabama, California, Florida, Georgia, Illinois and New York, according to a review of the company's real estate reported by The Takeout on September 9. Among the sites shut this year was Red Lobster's oldest standing restaurant, open in Tallahassee since 1968.

Red Lobster closures by the numbers

This isn't a step back, it's how we build forward. Right-sizing our footprint strengthens the brand.

The 484 remaining restaurants mark a 7% drop from the 520 the chain operated at the start of 2026, TheStreet reported on September 10. Red Lobster has shut more than 160 locations since emerging from Chapter 11 bankruptcy in September 2024, down from a peak near 650 before the filing.

"This isn't a step back, it's how we build forward. Right-sizing our footprint strengthens the brand," a Red Lobster spokesperson said of the latest round.

Systemwide sales fell 6.2% in 2025, and a $20 Ultimate Endless Shrimp promotion produced an $11 million quarterly loss before it was pulled. Annual lease obligations had climbed to roughly $190.5 million, close to a tenth of revenue, ahead of the bankruptcy filing.

From bankruptcy to a smaller chain

Red Lobster filed for Chapter 11 in May 2024 carrying close to $300 million in debt. Fortress Investment Group, together with TCW Private Credit and Blue Torch, took control through RL Investor Holdings and installed Damola Adamolekun as chief executive in October 2024.

Adamolekun has told the Wall Street Journal the chain needs to "get smaller" before it can grow again, concentrating investment on its strongest markets rather than defending every address.

Other closures have hit marquee names this year too, with Wolfgang Puck's restaurant at Disney Springs shutting after 29 years, even as investors keep betting on growth: Authentic Restaurant Brands raised $325 million for expansion elsewhere in the industry.

Further closures remain likely as the review continues. Adamolekun has also said he wants Red Lobster to become one of the most AI-forward restaurant companies in the sector, a harder sell for a chain still working out which dining rooms it can afford to keep open.