Delaware
Dozens more Red Lobster locations, including in Delaware, now in jeopardy of closing
Endless shrimp did not cause Red Lobster to file for bankruptcy
A series of financial problems including $294 million in debt has lead seafood giant Red Lobster to file for bankruptcy.
The Red Lobster bankruptcy saga continues, as the company disclosed at least 100 additional locations that the chain plans to close if its bankruptcy plans are approved and leases cannot be renegotiated.
Locations newly at risk include a Red Lobster location in Delaware, and additional locations around the region.
The company abruptly closed dozens of Red Lobsters last month, in a tally that quickly reached 99 closed Red Lobsters across 28 states as the company filed for Chapter 11 bankruptcy protections.
Bankruptcy filings in May revealed a grim situation: A 30% drop in guests since 2019, and a mere $30 million in cash on hand against more than a billion dollars in debt to thousands of creditors.
Restaurant closures likely won’t stop at the ones in May, according to bankruptcy filings. Red Lobster wrote in filings last month that it plans to not renew leases in their current form at more than 200 locations, around 40% of Red Lobster locations as of May.
Restaurants on the list of “rejected leases” appear to include restaurants that closed last month, and even some that closed much sooner. But conservatively, this means more than 100 restaurants are still in jeopardy of closing.
First closures: Dozens of Red Lobsters are closing across 27 states. Are Delaware locations safe?
More: Amid Red Lobster closings, loyal diners ask: Will beloved chain sleep with the fishes?
Plans to close these locations also are contingent on whether Red Lobster is able to renegotiate some leases, and whether bankruptcy plans are approved in their current form.
What Red Lobster locations are in danger of closing in Delaware, Maryland, New Jersey and Pennsylvania?
Neither the Stanton, Delaware, nor Dover, Delaware, location was among those listed as being in jeopardy.
But among those on Red Lobster’s list is the Talleyville location of Red Lobster, at 309 Rocky Run Parkway across from Concord Mall in Delaware.
The restaurant remains open as of Thursday, June 6, and staff had not been informed of any impending closure.
Other regional locations listed as being in jeopardy of closing include three Pennsylvania locations, three in New Jersey and one in Maryland.
Here’s a list of Red Lobster restaurants in the region that are apparently in jeopardy of closing as Red Lobster continues with its bankruptcy process.
Delaware
- 309 Rocky Run Parkway, Talleyville
Maryland
(Columbia, Gaithersburg, Laurel and Silver Spring locations already closed)
- 2314 N Salisbury Blvd, Salisbury
New Jersey
(Bridgewater, East Brunswick, Ledgewood and Lawrenceville locations already closed)
- 3003 Route 130 South, Delran
- 4411 Black Horse Pike, Mays Landing
- 211 Route 17 S, Paramus
Pennsylvania
(Erie location already closed)
- 935 Wayne Ave., Chambersburg
- 425 W. DeKalb Pike, King of Prussia
- 4766 McKnight Rd., Pittsburgh