At least 99 Red Lobster establishments are being auctioned off, raising uncertainty about the long-term fate of the renowned seafood restaurant chain.

The founder and CEO of TAGeX Brands, a liquidation specialist firm, announced via LinkedIn that he would oversee the closure of over 50 Red Lobster locations, with the auctioning off of the restaurants' equipment.

A website dedicated to liquidations revealed a series of closing locations across the United States, including cities like Denver, Indianapolis, Rochester (New York), Sacramento (California), San Antonio, and San Diego. On Tuesday, Restaurant Business magazine confirmed that 99 locations were in the process of closure.

These closures represent approximately 15% of the roughly 700 locations the company has nationwide, though it still maintains its status as the largest seafood restaurant chain in the United States.

Red Lobster has faced financial difficulties, including a significant debt burden, unfavorable lease terms, high executive turnover, and promotional strategies that have not yielded expected results, such as a "all-you-can-eat shrimp" promotion last fall, which resulted in losses for the company.

Last month, CNBC reported that Red Lobster was seeking a buyer to avoid a potential bankruptcy filing, but so far, there have been no concrete offers. Earlier this year, Thai Union, Red Lobster's main investor, announced its intention to divest from the company.

"The combination of the Covid-19 pandemic, persistent industry challenges, rising interest rates, and increasing material and labor costs have impacted Red Lobster, leading to prolonged negative financial contributions for Thai Union and its shareholders," said Thiraphong Chansiri, CEO of Thai Union Group, in a statement. "Following a thorough analysis, we have determined that Red Lobster's ongoing financial requirements no longer align with our capital allocation priorities, and therefore, we are seeking to divest from our minority investment."