Red Lobster, With 14 MD Stores, Considering Bankruptcy

MARYLAND — Red Lobster, which has 14 stores in Maryland, 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 Baltimore-DC area include:

• 183 Jennifer Road, Annapolis
• 7063 Arundel Mills Blvd., Hanover
• 14368 Baltimore Ave., Laurel
• 9011 Snowden Square Drive, Columbia
• 8533 Georgia Ave., Silver Spring
• 5051 Auth Way, Suitland
• 8019 Honeygo Blvd., Nottingham
• 3 Restaurant Park Drive, Owings Mills
• 15700 Shady Grove Road, Gaithersburg

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.