Red Lobster, With 20 VA Locations, Eyes Bankruptcy After $11M Loss

VIRGINIA — Red Lobster, which has six locations in Northern Virginia and 20 statewide, 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.

Red Lobster locations in Northern Virginia include:

• 3109 Spotsylvania Mall Dr., Fredericksburg
• 2544 Prince William Pkwy., Woodbridge
• 7505 Broken Branch Ln., Manassas
• 10325 Fairfax Blvd., Fairfax
• 555 S. Van Dorn St., Alexandria
• 21065 Dulles Town Center, Sterling

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.