3 Michigan Red Lobster locations could be next to close
Three Red Lobster locations in Michigan, including one in Metro Detroit, could be next to close, according to new bankruptcy documents. Three Red Lobster locations in Michigan, including one in Metro Detroit, could be next to close according to new bankruptcy documents. The struggling restaurant chain has listed 228 rejected leases that are losing money. The restaurants could close if they are unable to renegotiate their leases. As of last month, 99 Red Lobsters locations across 28 states had already closed. The company filed for Chapter 11 bankruptcy protection in May, entering into a "stalking horse" agreement to sell its business to an entity controlled by its lenders. The Orlando-based company said its annual guest counts were down 30% from 2019 and it lost $76 million in 2023. Red lobsterster has more than 100,000 creditors and estimated assets between $1 billion and $10 billion.
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Three Red Lobster locations in Michigan, including one in Metro Detroit, could be next to close, according to new bankruptcy documents.
USA Today reports the struggling restaurant chain listed 228 rejected leases that are losing money in documents filed last week. The new list of restaurant could close if they are unable to renegotiate their leases, according to the report.
As of last month, 99 Red Lobster locations across 28 states had already closed.
The Michigan locations on the list include:
A location in Fort Gratiot had already closed last month.
Red Lobster filed for Chapter 11 bankruptcy protection in May. As part of the filing, Red Lobster entered into a so-called “stalking horse” agreement, meaning it plans to sell its business to an entity formed and controlled by its lenders.
Orlando, Florida-based Red Lobster said in court filings that its annual guest counts were down 30% from 2019. The chain lost $76 million in 2023.
Red Lobster said in the court filing that it has more than 100,000 creditors and estimated assets between $1 billion and $10 billion. The company’s estimated liabilities are between $1 billion and $10 billion.