Red Lobster Files For Bankruptcy, Leaving NJ Locations In Doubt

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

The restaurants that closed in New Jersey are located in Bridgewater, East Brunswick, Lawrenceville and Ledgewood. Read more: Red Lobster Abruptly Closes 50+ Locations, Including 4 In NJ: See List

The Ledgewood location was even named to a list of dozens of U.S. locations that were auctioned off this month.

Red Lobster has roughly a dozen eateries in New Jersey that remain open. Some include:

• Toms River (1298 Hooper Ave.)
• Delran (3003 Rt. 130 South)
• Cherry Hill (2100 Rt. 38)
• South Plainfield (7000 Hadley Rd.)
• Iselin (635 U.S. Highway 1)
• Woodbury (1500 Almonesson Rd.)
• Mays Landing (4411 Black Horse Pike)
• Union (2520 Rt. 22)

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.”