Red Lobster is facing tough times, closing over fifty locations across the U.S. This week, the company announced it would auction off these restaurants.
TageX Brands, a liquidation firm, is handling the sales. They're dubbing this event their "largest restaurant equipment auction ever." Currently, 48 locations are listed for auction.
California and Florida will each see five Red Lobster restaurants close. Colorado and Maryland will lose four apiece.
These sales are being conducted on a "WINNER TAKES ALL" basis. Winning bidders will acquire all the contents of the locations they win.
Reports earlier in the year suggested Red Lobster might file for bankruptcy due to financial struggles.
Bloomberg sources say the chain might seek Chapter 11 to manage heavy leases and rising labor costs. No decisions on bankruptcy have been made yet, though discussions are ongoing.
Chapter 11 would allow Red Lobster to keep operating while it restructures its debt.
In March, Red Lobster appointed Jonathan Tibus as CEO. Tibus is renowned for turning around struggling businesses in the restaurant and hospitality sectors.