Beloved Chain Restaurant Likely Saved In New York After Closings
After filing for bankruptcy and closing many locations in New York, a new deal may save many other eateries.
In May, Hudson Valley Post learned Red Lobster is closing nearly 50 locations across the country, including many in New York.
Red Lobster Closes Many New York Locations
We later learned more locations were closed. See the full list of New York closures below.
11 New York Red Lobster Locations Suddenly Close
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Red Lobster Closes Locations In Poughkeepsie, Kingston, Nanuet, Scarsdale, Lakewood, Buffalo, Amherst, Williamsville, Rochester, Stony Brook, Watertown
Before filing for bankruptcy and closing restaurants, Hudson Valley Post reported the future of the popular eatery was in danger because owners were considering filing to restructure its debt, renegotiate leases and shed some long-term contracts.
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Endless Shrimp Investigation
The handling of the endless shrimp" promotion factored into the closing.
The company is now also investigating how the chain's majority owner, Thai Union, handled the "endless shrimp" promotion.
Goodbye: Supermarket Chain with 60 New York Locations Confirms Closures
That promotion caused $11 million in losses, according to court documents.
During the promotion, Red Lobster faced a major shrimp shortage and ended relationships with two shrimp suppliers. This made Thai Union, the chain's majority owner, the exclusive shrimp supplier for Red Lobster leading to higher costs, according to Reuters.
Red Lobster May Soon Have New Owner
The good news for fans of Red Lobster is the fact the company is reportedly nearing a deal with a new owner.
The company announced in a court filing that it will accept an existing sale offer from Fortress Credit Corp. The lender is experienced in restaurant management.
A $100 million loan from Fortress saved Red Lobster from closing all locations, reports say.
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