Restaurants & Bars
Red Lobster, With 39 CA Locations, Considering Bankruptcy
Restaurant patrons gobbled up the endless shrimp promotion, leading to a huge loss.
CALIFORNIA — Red Lobster, which has 39 stores in California, 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.
The restaurants in California include:
Find out what's happening in Across Californiawith free, real-time updates from Patch.
- Bakersfield
- Brea
- Canoga Park
- Chico
- Chula Vista
- Citrus Heights
- City of Industry
- Fairfield
- Fremont
- Fresno
- Garden Grove
- Inglewood
- Lakewood
- Milpitas
- Modesto
- Monrovia
- Montclair
- Ontario
- Palmdale
- Palm Desert
- Pittsburg
- Redding
- Riverside
- Rohnert Park
- Sacramento
- Salinas
- San Bernardino
- San Bruno
- San Diego (two locations)
- San Jose
- Santa Maria
- Stockton
- Temecula
- Torrance
- Valencia
- Vallejo
- Victorville
- Visalia
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 restructure as part of Chapter 11 bankruptcy.
Find out what's happening in Across Californiawith free, real-time updates from Patch.
Related:
Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.
