Red Lobster, With 31 PA Locations, Considering Bankruptcy

PENNSYLVANIA — Red Lobster, which has 31 locations in Pennsylvania, 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 the Philadelphia metro area include:

• 1 Baltimore Pike Springfield, PA 19064
• 9140 Roosevelt Blvd E., Philadelphia, PA 19115
• 425 W. DeKalb Pike, King of Prussia, PA 19406
• 640 Cowpath Road, Lansdale, PA 19446
• 2275 E. Lincoln Highway, Langhorne, PA 19047

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.