Red Lobster, With 27 MI Stores, Considering Bankruptcy

MICHIGAN — Red Lobster, which has 27 stores in Michigan, 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 metro Detroit area include:

• Ann Arbor, 2420 Carpenter Rd
• Dearborn Heights, 6850 N Telegraph Rd
• Livonia, 29980 Plymouth Rd
• Madison Heights, 101 Twelve Mile Rd
• Monroe, 1553 N Dixie Hwy
• Novi, 27760 Novi Road
• Rochester Hills, 2825 S Rochester Rd
• Sterling Heights, 13800 Hall Rd
• Southgate, 13999 Eureka Rd
• Waterford, 479 Telegraph Rd
• Warren, 25901 Hoover Rd
• Westland, 5774 N Wayne Rd

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 to restructure as part of Chapter 11 bankruptcy.