AUSTIN, Texas — Just weeks after filing for bankruptcy, Red Lobster wants to close more locations.
In May, more than 50 locations abruptly closed nationwide, leaving hundreds of employees without jobs.
The Florida-based seafood chain initially closed 10 locations in Texas. But court documents reveal Red Lobster could close 15 more restaurants in Texas, including two in Austin and one in San Marcos, pending the approval of its bankruptcy plan.
In Austin, the restaurant on South Lamar Boulevard, near Highway 290, and the location on West Anderson Lane and Northcrest Boulevard, are at risk of shutting down. In San Marcos, the restaurant on Interstate 35 and Texas Highway 123 is also at risk of shuttering.
The list comes through a court filing that details what locations are in danger of shutting down if the court approves its plan. Despite its Chapter 11 bankruptcy filing, Red Lobster issued a statement reassuring customers that the chain isn't going anywhere.
"Bankruptcy is a word that is often misunderstood. Filing for bankruptcy does not mean we are going out of business. In fact, it means just the opposite," Red Lobster said in the statement. "It is a legal process that allows us to make changes to our business and our cost structure so that Red Lobster can continue as a stronger company going forward."
In the statement, Red Lobster also cited how brands like Delta and Hertz have used bankruptcy protections in the past and "emerged stronger."
Meanwhile, TAGeX brands announced it would auction off equipment used at the more than 50 locations recently shut down by Red Lobster.