2 MN Red Lobster Restaurants May Close After Endless Shrimp Promotion

MINNESOTA — Red Lobster, which abruptly closed more than 50 restaurants last month, revealed in bankruptcy court that it could close at least 125 locations as it tries to recoup losses from its endless shrimp promotion.

In its Chapter 11 bankruptcy petition, Red Lobster said it had more than $1 billion in debts and less than $30 million cash on hand. The company plans to sell the business to its lenders in hopes of keeping some of its nearly 600 Red Lobster locations open, CNN reported.

Red Lobster said that if it can’t renegotiate its leases, these restaurants are in danger of closure in Minnesota:

• 1951 American Blvd. West, Bloomington
• 8900 Golden Valley Road, Golden Valley

Overall, Red Lobster has 13 eateries in Minnesota that remain open.

Red Lobster’s bankruptcy was expected. Its “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.

Red Lobster said the remaining restaurants will remain open and continue operating as usual during the bankruptcy process.

“This restructuring is the best path forward for Red Lobster. It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth,” CEO Jonathan Tibus said in a news release. “The support we've received from our lenders and vendors will help ensure that we can complete the sale process quickly and efficiently while remaining focused on our employees and guests.”