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Orlando-based Red Lobster filed for Chapter 11 relief in May 2024. - PROVIDED BY RED LOBSTER
Orlando-based Red Lobster filed for Chapter 11 relief in May 2024. - PROVIDED BY RED LOBSTER
Red Lobster closures include 4 restaurants in NJ
Kimberly Redmond//May 15, 2024//
As Red Lobster weighs a possible Chapter 11 filing, the struggling casual dining chain abruptly closed nearly 100 restaurants nationwide, including four in New Jersey.
With the Orlando-based seafood brand expected to file for bankruptcy as early as next week, the company is looking to pare down its debt, The Wall Street Journal reported.
Additionally, online restaurant liquidator TAGeX Brands is auctioning off kitchen items and furniture from shuttered Red Lobster units – including Ledgewood – as part of its “largest restaurant equipment sale ever.”
While the closures represent about 15% of the company’s 700-plus global footprint, Red Lobster remains the largest seafood restaurant chain in the U.S.
According to Red Lobster’s website, the following locations in New Jersey are “closed” for the foreseeable future:
- Ledgewood
- Lawrenceville
- East Brunswick
- Bridgewater
Within New Jersey, the following Red Lobster restaurants remain open: Delran, Iselin, Paramus, South Plainfield, Union, Wayne, Woodbury, Vineland, Toms River, Secaucus, Mays Landing and Cherry Hill.
Shrimp problems
Red Lobster – which has not publicly commented on this week’s closings – has been struggling with a significant debt load, executive turnover and unfavorable lease terms. It’s all-you-can eat shrimp promotion last year also resulted in a significant loss for the company.
See also:
In January, TGI Fridays also abruptly closed dozens of locations, including seven restaurants in New Jersey. Click here for the list of closures.
According to Bloomberg, the chain began considering the option of Chapter 11 last month as a way to address leases and labor costs. Though Red Lobster hopes to find a buyer so it can avoid a bankruptcy filing, none have materialized yet, NBC reported.
In January 2024, Red Lobster owner Thai Union Group announced it was looking to sell its stake in the brand. It cited the impact of a “combination of [the] COVID-19 pandemic, sustained industry headwinds, higher interest rates and rising material and labor costs” on profits.
“After detailed analysis, we have determined that Red Lobster’s ongoing financial requirements no longer align with our capital allocation priorities and therefore are pursuing an exit of our minority investment,” the company said.
