Shocking ‘Endless’ Reason For Massive Closures In New York

After closing over 10 New York locations, Red Lobster has filed for bankruptcy and revealed the reason for these drastic moves.

Last week, Hudson Valley Post learned Red Lobster is closing nearly 100 locations across the country, including many in New York.

We soon learned more locations in New York closed. See the full list of New York closures below.

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Red Lobster Closes Locations In Poughkeepsie, Kingston, Nanuet, Scarsdale, Lakewood, Buffalo, Amherst, Williamsville, Rochester, Stony Brook, Watertown

Last month, Hudson Valley Post reported the future of the popular eatery was in danger because owners were considering filing bankruptcy.

After announcing plans to close about 100 locations nationwide, Red Lobster was hoping to find a buyer to avoid bankruptcy.

Red Lobster Files For Bankruptcy

On Sunday, the company officially filed for voluntary Chapter 11 bankruptcy.

The company didn't announce any more closures and plans to keep its remaining locations open by selling the remaining locations to its group of lenders.

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Investigation Into Endless Shrimp Promotion

The company is now also investigating how the chain's majority owner, Thai Union, handled the "endless shrimp" promotion.

That promotion caused $11 million in losses, according to court documents.

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During the promotion, Red Lobster faced a major shrimp shortage and ended relationships with two shrimp suppliers. This made Thai Union the exclusive shrimp supplier for Red Lobster leading to higher costs, according to Reuters.

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