Red Lobster May file Bankruptcy. Will NJ & PA Locations close?

Uh-oh. Don't even tell me the Red Lobster cheddar biscuits may be going away for good.

Don't freak out, I think that's a little premature.

Red Lobster Considering Filing for Chapter 11 Bankruptcy

I was surprised to see People.com reporting that the chain restaurant is thinking about filing Chapter 11 Bankruptcy. Oh boy, I can hear the collective gasp now.

Like many, many other restaurants since the pandemic, the restaurant is having a hard time turning a profit, keeping up with rising leases at its locations throughout the United States, and paying employees.

Red Lobster reported $12 million loss in 4th quarter of 2023

In the last quarter of 2023, the company reported a whopping $12.5 million loss.

If you're a Red Lobster fan, you may remember a special deal it offered last year...the endless shrimp promotion.

The hope was for that deal to generate more money for the restaurant and it didn't. The price of the deal has now gone up from $20 to $25 to try and recoup some of the losses. The endless shrimp deal is now on the permanent menu.

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Another promotion the company rolled out to hopefully increase profits was the endless lobster meal to a limited number of customers, in conjunction of the restaurant's yearly LobsterFest.

The "prize" meal was awarded to 150 customers across America. They all received a two-hour free, endless lobster dinner along with two side dishes, and of course, Red Lobster's famous cheddar biscuits.

Red Lobster hired new CEO to help avoid bankruptcy

The good news is Red Lobster hired a new CEO last month. His name is Jonathan Tibus and he's known for getting businesses back on track that are close to bankruptcy.

Let's hope he works his magic because Red Lobster fans are loyal and I know wouldn't want it to close.

There are 16 Red Lobster locations in New Jersey and 31 locations in Pennsylvania.

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Restaurants that closed in New Jersey During 2023

Here are some of the restaurants that closed their doors around New Jersey in 2023 listed alphabetically. Did your favorite restaurant close in 2023? Contact reporter Dan Alexander at Dan.Alexander@townsquaremedia.com.

Gallery Credit: Dan Alexander