Red Lobster, With 16 NJ Locations, Considering Bankruptcy

NEW JERSEY — Red Lobster, which has 16 stores in New Jersey, 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.

Some of the restaurants in New Jersey include:

• 2520 US Highway Route 22 Union, NJ 07083
• 1298 Hooper AveToms River, NJ 08753
• 750 Highway 18 North East Brunswick, NJ 08816
• 3255 Brunswick Pike Lawrenceville, NJ 086484411
• Black Horse Pike Mays Landing, NJ 08330

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.