Popular Chain Restaurant Files For Bankruptcy, Leaving PA Locations In Doubt

YOUR PATCH — Red Lobster, which has 31 restaurants in Pennsylvania, has filed for Chapter 11 bankruptcy protection as part of a strategy to recoup losses from its endless shrimp promotion that included the abrupt closing last week of more than 50 locations nationwide.

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

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. The chain currently has 578 restaurants in 44 U.S. states and Canada.

“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.”