Red Lobster has recently closed four locations in Maryland—Gaithersburg, Columbia, Silver Spring, and Laurel—as part of a significant downsizing effort aimed at addressing ongoing financial challenges. This decision is part of a larger trend, with dozens of Red Lobster locations shutting down across the United States. The chain is grappling with substantial debt and has suffered from business setbacks, including a disastrous $20 "all you can eat shrimp" promotion that cost the company $11 million. In response to these difficulties, Red Lobster has hired TAGeX Brands to conduct auctions for the liquidation of assets from the closed locations. The auctions are designed to allow winning bidders to acquire entire restaurant contents, including kitchen equipment and furnishings.

Amid these closures, Red Lobster is also exploring options for potential buyers and has not ruled out filing for bankruptcy due to rising costs related to leases and labor. With the seafood chain's future uncertain, this situation reflects broader challenges in the restaurant industry. The auctions are positioned as a chance for other businesses to enhance their operations at a fraction of the typical cost.