Red Lobster to close more restaurants

Related: Struggling restaurant chain quietly shutters dozens of locations

Transcription:

CONWAY GITTENS: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching today on TheStreet.

The Dow is nearing record highs as investors await earnings from Nvidia and look ahead to the Federal Reserve’s favorite inflation gauge, known as the PCE index. Investors are also seeing a boost in consumer confidence, which rose to a six-month high in August, according to the Conference Board.

In other news: Red Lobster is closing even more locations as part of its bankruptcy process.

Court records show the struggling casual dining chain will close 23 more locations — on top of the more than 100 restaurants it shuttered earlier this summer. The lawsuit will leave Red Lobster with about 500 restaurants, down from 650 before the start of the year.

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The closures are spread across 15 states across the country.

Once an iconic American brand, Red Lobster is now trying to right the ship after falling on hard times. Several missteps, including a money-losing shrimp addition to the menu, blew an $11 million hole in the company’s business. At the same time, like many in the restaurant industry, the chain is struggling with higher food costs, labor shortages and a budget-conscious consumer.

As part of its bankruptcy reorganization, Red Lobster put itself up for sale, secured a $100 million loan and announced an industry veteran as its new CEO.

Red Lobster filed for Chapter 11 bankruptcy in May.

That will do for your daily briefing. From the New York Stock Exchange, this is Conway Gittens with TheStreet.