Red Lobster, Which Closed 3 VA Stores, Files For Bankruptcy

VIRGINIA — Red Lobster, which abruptly closed more than 50 restaurants last week, including three in Virginia, has filed for Chapter 11 bankruptcy to recoup millions of dollars in losses stemming from its endless shrimp promotion.

The shuttered restaurants in Virginia include:

• Colonial Heights: 119 Temple Lake Drive
• Newport News: 12580 Jefferson Ave.
• Williamsburg: 2100 Richmond Road

Other Virginia restaurants remain open, including these:

• Alexandria
• Fairfax
• Fredericksburg
• Manassas
• Richmond
• Staunton
• Sterling
• Woodbridge

These Virginia restaurant locations are up for auction, with all equipment being sold off, according to the firm TagExBrands.

• Colonial Heights
• Williamsburg
• Newport News

Related: 3 VA Red Lobster Restaurants Close With No Notice: See List

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.”