Red Lobster Files For Bankruptcy, Closes MI Location

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

The restaurant that closed in Michigan is located in Fort Gratiot Township in St. Clair County. Red Lobster has 26 eateries in Michigan that remain open. Some include:

• Adrian
• Ann Arbor
• Battle Creek
• Bay City
• Dearborn Heights
• Flint
• Grandville
• Jackson
• Kentwood
• Lansing
• Livonia
• Madison Heights
• Marquette
• Monroe
• Mount Pleasant
• Muskegon
• Novi
• Portage
• Rochester Hills
• Saginaw
• Southgate
• Sterling Heights
• Traverse City
• Warren
• Waterford
• Westland

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."