Restaurants & Bars
Red Lobster, With 39 CA Locations, Considering Bankruptcy
Restaurant patrons gobbled up the endless shrimp promotion, leading to a huge loss.
CALIFORNIA — Red Lobster, which has 39 stores in California, is considering Chapter 11 bankruptcy to recoup $11 million in losses from its endless shrimp promotion, Bloomberg reported.
Red Lobster’s “Ultimate Endless Shrimp” promotion last year was intended as a limited-time offer but brought in enough new customers that the chain added it to its permanent menu in June. Customers gobbled it up, and the chain reported fourth-quarter 2023 losses of $12.5 million, the outlet reported.
The restaurants in California include:
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- Bakersfield
- Brea
- Canoga Park
- Chico
- Chula Vista
- Citrus Heights
- City of Industry
- Fairfield
- Fremont
- Fresno
- Garden Grove
- Inglewood
- Lakewood
- Milpitas
- Modesto
- Monrovia
- Montclair
- Ontario
- Palmdale
- Palm Desert
- Pittsburg
- Redding
- Riverside
- Rohnert Park
- Sacramento
- Salinas
- San Bernardino
- San Bruno
- San Diego (two locations)
- San Jose
- Santa Maria
- Stockton
- Temecula
- Torrance
- Valencia
- Vallejo
- Victorville
- Visalia
The restaurant’s legal representatives from King & Spalding have advised bankruptcy as a way to stay open while dealing with the debt and re-evaluate long-term contracts and leases, the outlet reported.
Fortress Investment Group, which is one of the chain’s key lenders, is involved in the debt negotiations, Bloomberg reported. Red Lobster brought in a new CEO, Jonathan Tibus, who has worked with other chains restructure as part of Chapter 11 bankruptcy.
Find out what's happening in Across Californiafor free with the latest updates from Patch.
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