At least three more Red Lobster restaurants in New Jersey may be in danger of closing.

In court filings, the now-bankrupt Orlando-based fast casual seafood dining brand identified at least 100 locations that could go dark if it cannot renegotiate lease agreements for the properties.

Restaurants marked for potential closure in New Jersey are in are Delran (3003 Route 130 S.), Mays Landing (4411 Black Horse Pike) and Paramus (211 Route 17 S.).

Red Lobster already shuttered dozens of locations nationwide last month just days before filing for Chapter 11 relief in U.S. District Court for the Middle District of Florida. Those closures included four New Jersey restaurants (Bridgewater, Ledgewood, Lawrenceville and East Brunswick).

In recent years, the chain has struggled with a significant debt load, executive turnover and unfavorable lease terms. Last year’s all-you-can eat shrimp promotion also resulted in a major loss for the company when it was permanently added to the menu.

In its petition, Red Lobster reported a 30% drop in guests since 2019 and a mere $30 million in cash on hand against more than a billion dollars in debt to thousands of creditors.

Despite the smaller footprint, Red Lobster remains the largest seafood restaurant chain in the U.S., with about 600 locations. The brand has said it would continue to operate thanks to a $100 million debtor-in-possession financing agreement from existing lenders.

However, the chain said it doesn’t plan to renew leases in their current form at nearly 230 locations if they continue operating currently as is. Some of the restaurants on that list already closed last month, but there are still more than 100 outposts in jeopardy of shuttering, according to the filing.

Whether or not those closures occur is also contingent upon the court’s approval of Red Lobster’s bankruptcy plan.

‘The best path forward’

According to the company, it entered into a so-called “stalking horse” agreement to sell the business to an entity formed and controlled by its lenders.

Jonathan Tibus – Red Lobster’s fifth CEO since 2021 – has said he believes the restructuring “is the best path forward.”

“It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth. 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,” he said in a statement.

The bankruptcy filing comes five months after Red Lobster owner Thai Union Group announced plans 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.

Red Lobster is also facing a lawsuit from a former employee at the now-shuttered Ledgewood restaurant for allegedly laying her off without notice.

In a potential federal class action suit filed in May in U.S. District Court for the Middle District of Florida, lead plaintiff Donna Lowe says the brand violated federal and New Jersey employment laws when it terminated her without warning.