PHOTO BY ROLAND LIM
The restaurant was one of 93 Red Lobsters around the country to abruptly close on May 13. A week later, the chain filed for Chapter 11 bankruptcy. In the filing, CEO Jon- athan Tibus wrote that Red Lob- ster had deemed the closed stores “non-performing” because of rent costs and/or financial performance, calling the closures a “difficult deci- sion.” The bankruptcy capped years of difficulties for the 550-unit chain, a casual-dining pioneer that strug- gled to bounce back from the Great Recession and was sold by Darden Restaurants to private-equity firm Golden Gate Capital in 2014. By 2020, Bangkok-based seafood sup- plier Thai Union Group had taken the reins. One of its last moves be- fore deciding to exit its investment this year was an ill-advised all-you-
“I'm so sad for myself and all my seafood loving friends,” another said. “They were always busy so I really don't understand.” The closure doubled as a psycho- logical blow to a community that is working to reimagine itself after years of economic challenges. Located about 160 miles south of Chicago, Danville emerged as an in- dustrial hub in the late 19th and ear- ly 20th centuries, bustling with coal mining and manufacturing jobs. But by the late 20th century, many of those businesses had begun to disappear. Large employers like General Electric, Hyster and Pills- bury shuttered factories in the area, mirroring a trend happening across the Midwest at the time. The last straw came in 1995, when General Motors closed a mas- sive foundry that had been the ar-
can-eat shrimp deal that put a huge dent in Red Lobster’s profits. The chain is now hoping to revi- talize itself with a refreshed balance sheet and a new owner. But in plac- es like Danville, it leaves a void that will be difficult to fill. “They had good food, good ser- vice, and it was one of the nicer sit-down restaurants in town,” said Mayor Rickey Williams. “It’s been tough to not have that all of a sud- den.” Residents took to Facebook to lament the loss of the dining scene staple, which now sits fenced-off and empty on a busy stretch of road lined with other restaurants and re- tailers. “Always used to go to Red Lob- ster every year for my birthday,” one wrote. “Danville needs a few more nice restaurants.”
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OCTOBER 2024 RESTAURANT BUSINESS
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