After bankruptcy, is Red Lobster closing its central Ohio restaurants?
COLUMBUS, Ohio (WCMH) -- Red Lobster is closing nearly 100 restaurants across the U.S. after filing for bankruptcy earlier this week, citing $1 billion in debt and the restaurant's "endless shrimp" deal that yielded an $11 million loss. The Orlando, Florida-based seafood chain announced Sunday the company filed for Chapter 11 bankruptcy protection and has [...]
COLUMBUS, Ohio (WCMH) -- Red Lobster is closing nearly 100 restaurants across the U.S. after filing for bankruptcy earlier this week, citing $1 billion in debt and the restaurant's "endless shrimp" deal that yielded an $11 million loss.
The Orlando, Florida-based seafood chain announced Sunday the company filed for Chapter 11 bankruptcy protection and has since listed 99 stores online as "temporarily closed." The closures span 28 states including California, Florida, Indiana, Michigan, New York and South Carolina, with kitchen equipment from more than 50 of those locations up for auction.
"This restructuring is the best path forward for Red Lobster," CEO Jonathan Tibus told the Associated Press. "It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth."
Red Lobster's website still lists 38 Ohio locations as open, including the following six Columbus area restaurants:
- 6091 Sawmill Road, Dublin
- 1270 Polaris Parkway, Columbus
- 1520 Georgesville Road, Columbus
- 2147 S. Hamilton Road, Columbus
- 1515 River Valley Circle North, Lancaster
- 909 Hebron Road, Heath
In the bankruptcy filing, Red Lobster said it has less than $30 million in cash and currently holds an estimated $1 billion to $10 billion in liabilities to more than 100,000 creditors. As part of the filing, Red Lobster entered into a "stalking horse" agreement, meaning it plans to sell its business to another company formed and controlled by its lenders.
Subtracting the 99 set for closure, Red Lobster operates more than 540 restaurants across the U.S. Texas is home to the most locations, with 45 currently open and nine closing. Florida is in second with 41 open restaurants and 17 closing, while Ohio is third with its 38. Rounding out the top five, Pennsylvania is fourth with 32 and California is fifth with 31 open and eight closing.
Red Lobster has spent $190.5 million so far this year operating all of these locations, including more than $64 million dedicated to "underperforming locations," the filing said. The seafood chain also noted its annual guest count has decreased 30% since 2019, with net sales showing "material decline" through the past year, including a $76 million loss in 2023.
A key turning point was the chain's "endless shrimp" deal last year, which allowed patrons to pay $20 for unlimited shrimp and was meant to only be a limited-time promotion. A decision to add the special as a permanent menu item ended up costing the company $11 million.
Founded in 1968, the chain has also expanded to nearly 30 locations in Canada and 27 other international restaurants. As of this week, the company's U.S. workforce consists of 34,000 employees.