MARYLAND – May 20, 2024
Red Lobster, known for its recent closure of over 50 restaurants, including four in Maryland, has filed for Chapter 11 bankruptcy due to substantial losses attributed to its unlimited shrimp promotion.
The Maryland restaurants affected by this bankruptcy filing are:
Columbia: 9011 Snowden Square Drive
Gaithersburg: 15700 Shady Grove Road
Laurel: 14368 Baltimore Ave.
Silver Spring: 8533 Georgia Ave.
These Maryland locations are currently being auctioned off, with all assets set to be sold by the company TagExBrands.
Gaithersburg
Columbia
Silver Spring
Laurel
The surge of customers attracted by the “Ultimate Endless Shrimp” promotion that started as a limited-time offer but was eventually made a permanent menu item in June led to a financial setback for Red Lobster. The chain experienced a fourth-quarter 2023 loss of $12.5 million due to overwhelming demand for the promotion.
Despite the bankruptcy filing, Red Lobster ensures that its remaining restaurants will continue to operate as usual during this restructuring process.
CEO Jonathan Tibus expressed optimism about the situation, stating, “This restructuring is crucial for Red Lobster. It enables us to confront financial and operational challenges and come out stronger with a renewed focus on growth. The support from our lenders and suppliers will facilitate a swift and efficient sale process while maintaining our commitment to our employees and customers.”
