Red Lobster
PE-Owned1 Documented ImpactGolden Gate Capital's sale-leaseback stripped Red Lobster of real estate assets, saddling it with unaffordable lease obligations. Filed Chapter 11 in 2024.
Ownership Information
Red Lobster is owned by Golden Gate Capital. Private equity ownership often leads to cost-cutting, price increases, and reduced quality of service as firms prioritize returns for investors over customers and employees.Learn more about PE ownership impact →
Timeline
Red Lobster founded
Acquired by Golden Gate Capital for $2.1 billion
Red Lobster filed bankruptcy after Golden Gate Capital's sale-leaseback
Golden Gate Capital sold Red Lobster's real estate and forced it to lease back at above-market rates. Customer count dropped 30%. The $20 "Endless Shrimp" promotion lost $11M. Filed Chapter 11 in 2024, closing 130+ locations.
How Private Equity Trashed Red Lobster
CNN Business →Before vs. After PE Acquisition
Locations
Reported 2024
Before PE
~700 restaurants
After PE
~518 restaurants
↓ 26%
Tracked Locations
FL (1)
Tampa
2712 Main St
Tampa, FL 33601
555-426-6207
NY (1)
New York
9871 Main St
New York, NY 10001
555-324-7134
OH (2)
Cleveland
3476 Main St
Cleveland, OH 44101
555-889-8365
Cleveland
5282 Main St
Cleveland, OH 44101
555-349-4476
PA (1)
Pittsburgh
9702 Main St
Pittsburgh, PA 15201
555-633-3081
TX (3)
Austin
6890 Main St
Austin, TX 73301
555-856-4254
Austin
1005 Main St
Austin, TX 73301
555-344-5079
Houston
6755 Main St
Houston, TX 77001
555-306-3816