Popular Restaurant Chain With 28 New York Locations Considering Bankruptcy

A popular restaurant chain with 28 locations in New York may be filing bankruptcy.

Bankruptcy. It's the word many businesses are facing all across the country. A number of pharmacies including Rite Aid and Walgreens have been the latest to use the B word.

READ MORE: Rite Aid Closing 53 More Stores, 13 in New York

Red Lobster Bankruptcy?

Hold the Cheddar Bay Biscuits! Now it's Red Lobster considering filing Chapter 11 bankruptcy, according to the latest Bloomberg report.

"The company is in talks to divest itself from long-term contracts and renegotiate leases."

Restaurants took a major hit during the COVID-19 pandemic and many have not recovered. In 2022, Red Lobster lost $33 million as fewer people were eating out and labor costs were skyrocketing. 16 restaurants had to be closed to try and make up for the losses.

READ MORE: Craft Chain With 22 Stores in New York, May File Bankruptcy to Cut Debt

All You Can Eat Costs Millions

In 2023, a good idea turned into even more losses for the chain. The $20 all-you-can-eat shrimp deal that debuted in the summer ended up costing Red Lobster over $11 million in one quarter.

Red Lobster began in 1968 as one of the first seafood chains in the U.S. Today it's looking to keep the doors open by considering filing bankruptcy.

READ MORE: Major Retailer Files for Bankruptcy to Begin 'Winding Down Operations'

Hold the Biscuits

You don't need to stock up on those Cheddar Bay Biscuits just yet. Even if Red Lobster does file bankruptcy, it doesn't necessarily mean the company will be closing all their restaurants.

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