Red Lobster, With 58 FL Stores, Considering Bankruptcy

FLORIDA — Red Lobster, which has 58 stores in Florida, 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.

Many of the restaurants in Florida are in the Tampa Bay and Orlando metros, including:

• 5711 14th Street West, Bradenton
• 6151 34th Street N., Saint Petersburg
• 26320 U.S. 19th North, Clearwater
• 2625 East Busch Blvd., Tampa
• 17021 Palm Pointe Drive, Tampa
• 11601 N. Dale Mabry, Tampa
• 2604 West Brandon Blvd., Brandon
• 3706 North Road 98, Lakeland
• 9892 International Drive, Orlando

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.