Red Lobster's bankruptcy threatens closures in major Florida cities like Orlando, Tampa & Miami

Red Lobster says it not going out of business

Despite closing dozens of restaurants and filing for bankruptcy, Red Lobster is reassuring customers that it will not be going out of business.

ORLANDO, Fla. - Dozens of Red Lobster locations in Florida have either closed their doors or are at risk of closing. That's according to the restaurant chain's bankruptcy filing obtained by FOX 35 on Friday, which details the company's business plan for axing restaurants that are "driving losses."

Should these bankruptcy plans come to fruition, major Florida cities like Orlando, Miami, Tampa, West Palm Beach and Jacksonville would be left without a Red Lobster location.

The bankruptcy documents were filed in U.S. Bankruptcy Court in the Middle District of Florida on May 20. The company said it's looking to restructure, which includes managing its "business and assets responsibly and economically," the filing said. Some restaurants, however, aren't worth restructuring, according to the company.

AUSTIN, TEXAS - MAY 20: The Red Lobster logo displayed near a Red Lobster restaurant on May 20, 2024 in Austin, Texas. Red Lobster has filed for Chapter 11 bankruptcy protection after a failed lease-back agreement and "endless shrimp" promotion backf

Expand

That's why it's putting dozens of restaurants across the country on the chopping block. In Florida alone, over 40 restaurants were listed in the documents. It should be noted that some of these restaurants are already closed, according to Red Lobster's website.

FOX 35 reviewed the filing, and essentially, the company wants to reject unexpired leases of restaurants that are becoming a financial "burden," the filing said. These locations are "likely to continue to drive losses for the Debtors and should be rejected," the documents added, meaning the company doesn't want to keep the lease going on these properties.

That being said, they're not looking to sell them off either, because it would be an "unnecessary drain upon the financial resources of Debtors' cash." They have no value or benefit to the estate, Red Lobster said in the filing.

Red Lobster also isn't planning on relocating the locations at risk of closing. In the filing, the company said "there is no net benefit that can be realized from an attempt to market and assign the Rejected Leases."

Any personal property at these restaurant locations, including furniture, fixtures and equipment is set to be abandoned as well, according to the documents.

AUSTIN, TEXAS - MAY 20: In this photo illustration, a menu is displayed on a plate at a Red Lobster restaurant on May 20, 2024 in Austin, Texas. Red Lobster has filed for Chapter 11 bankruptcy protection after a failed lease-back agreement and "endle

Expand

FOX 35 has reached out to Red Lobster, but hasn't heard back yet. The company did share a message on social media, though, assuring Cheddar Bay Biscuits fans that the restaurant isn't going anywhere.

"Bankruptcy is a word that is often misunderstood. Filing for bankruptcy does not mean we are going out of business. In fact, it means just the opposite," Red Lobster said in its statement. "It is a legal process that allows us to make changes to our business and our cost structure so that Red Lobster can continue as a stronger company going forward. As many of you know, we recently made the tough decision to close a number of our restaurants."

FOX 35 previously reported that 17 locations in Florida are now closed. That list did not include the permanently closed St. Augustine location, which is not listed on Red Lobster's website for an unknown reason. The St. Augustine location, however, was mentioned in the bankruptcy filing.

"This restructuring is the best path forward for Red Lobster," CEO Jonathan Tibus said in a news release when the company filed for bankruptcy. "It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth. 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."

Expand

Here's a look at the restaurants in Florida impacted by Red Lobster's bankruptcy filing. It should be noted that if a restaurant location is on this list, it could close its doors forever.