Red Lobster filed for Chapter 11 bankruptcy in Florida on Sunday night, the seafood restaurant chain said in a statement.
The news follows announcements from a liquidation company that the beleaguered chain, known for its cheddar biscuits and limitless shrimp, had “temporarily” closed 87 locations nationwide, including four in New Jersey. Twelve others remain open in the Garden State, at least for now.
According to Red Lobster’s statement, bankruptcy proceedings will allow it to “drive operational improvements, simplify the business through a reduction in locations, and pursue a sale of substantially all of its assets.”
The company, founded in 1968 and headquartered in Orlando, said that it would sell its business to a new entity wholly owned and controlled by its lenders. It said its existing “restaurants will remain open and operating as usual during the Chapter 11 process.”
Red Lobster posted an $11 million loss in the third quarter last year, driven in part by an all-you-can-eat shrimp promotion, and a $12.5 million loss in the fourth quarter.
These four NJ Red Lobster restaurants have closed
The liquidator, TAGeX Brands announced last Monday that it was auctioning off equipment from 48 Red Lobster restaurants that have closed. Each auction winner was set to receive the “entire contents of the Red Lobster location they bid on,” TAGeX said on its website.
There are 16 Red Lobster locations in New Jersey, including the four that shut down. The locations closed include:
1271 U.S. Route 22, Bridgewater
750 Route 18 North, East Brunswick
3255 Brunswick Pike, Lawrenceville
303 Route 10, Roxbury-Ledgewood
Sixty employees are being let go at the Ledgewood location, according to public filings with the state Labor Department.
“This restructuring is the best path forward for Red Lobster. It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth,” said Jonathan Tibus, the company’s CEO, in the statement.
“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 added.
The 12 remaining Red Lobster locations in New Jersey
2100 Route 38, Cherry Hill
3003 Route 130 South, Delran
635 U.S Highway 1, Iselin
4411 Black Horse Pike, Mays Landing
211 Route 17 South, Paramus
700 Plaza Drive, Secaucus
7000 Hadley R.d, South Plainfield
1298 Hooper Ave., Toms River
2520 Route 22, Union
3849 South Delsea Drive, Vineland
520 Highway 46, Wayne
1500 Almonesson Rd., Woodbury
This article contains information from USA TODAY.
Daniel Munoz covers business, consumer affairs, labor and the economy for NorthJersey.com and The Record.
Email: munozd@northjersey.com; Twitter:@danielmunoz100 and Facebook
First appeared on www.northjersey.com