Red Lobster Filed for Bankruptcy (But They Left A Hopeful Message For Patrons!)

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Red Lobster has filed for Chapter 11 Bankruptcy, but the chain may be far from over.

Your favorite Cheddar Bay Biscuits may not be gone forever! 🎉

Last week, we posted about Red Lobster quietly, and suddenly, shutting down 87 locations across the country. These locations experienced auctions last week where furnishings and equipment were sold off to the highest bidder.

We often post Red Lobster meal deals like endless shrimp, and it seems Hip readers love these deals too. Unfortunately, despite the restaurant’s efforts to make dining affordable, news just broke that the chain has filed for Chapter 11 Bankruptcy protection. Some fans of the restaurant may be fearing this will be the end of the chain…

However, Red Lobster just posted a hopeful open letter to patrons!

Amidst news of the bankruptcy filing, Red Lobster posted an open letter to fans stating their intent to continue serving seafood – and their infamous Cheddar Bay Biscuits – for generations to come!

In the letter, the restaurant states that they are not going out of business but rather protecting their future. The bankruptcy filing allows them to make changes to their business and cost structure. The company referenced both Hertz and Delta as examples of companies who have filed for bankruptcy but remain in business and “emerged stronger.”

The letter concludes with Red Lobster asking patrons to continue to dine with them in the restaurants that are open. They also ask that fans root for the company and hopefully “write a new chapter” together.

two shrimp entrees and beverages on a red table

Where did the restaurant closures take place?

Red Lobster locations in Alabama, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Maryland, Michigan, Mississippi, New York, New Jersey, North Dakota, Oklahoma, South Carolina, Texas, Virginia, Washington, and Wisconsin have all seen sudden closures.

The majority of Red Lobsters are remaining open for now.

We will keep you informed as we hear more!

Learn how to make our copycat Cheddar Bay Biscuits at home!

About the writer:

Kara is a writer and photographer from the Midwest. Her creative work has appeared in various publications over the past decade. With a background in finance, she loves to be money-savvy.

Join The Discussion

Comments 19

  1. Ben

    They closed the one near me in Bloomingdale, IL

    • Jules

      On Army Trail? That’s the one closest to me. Haven’t been recently but liked knowing it was there if we wanted to go.

      • Ben

        Yeah! I was planning on going this weekend!

  2. Ldynes25

    Ours closed yesterday abruptly in Watertown, NY

  3. Ihearthip

    rip shrimplovers feast 🙁

  4. grandmat57


  5. Ihearthip

    Their cheddar biscuits in the store are good. We get them at Sam’s Club.

    • Jessica (Hip Sidekick)

      I’ve seen those in store as well. Good to know they’re yummy! Hoping they might continue to have these available. 🤞❤️

  6. Victoria Little

    They closed one here in North Carolina.

  7. ShoppingFan

    So sad! So sad! My heart hurts as this was a childhood fav of mine. My parents would take us one pay day Friday a month in the 80s. In my 30-50s, I still enjoyed dining there on occasion. My closest one closed 3 yrs ago now the next one has too. 😞😢 RIP cheddar biscuits

    • Jessica (Hip Sidekick)

      Such a bummer to hear about the locations near you, ShoppingFan. 😔❤️ What a special memory with your parents!

  8. GloD

    They closed the one in Kingston NY without telling any of the employees!

    • Jessica (Hip Sidekick)

      Oh no! That’s heartbreaking for those employees. 😔 Thanks for sharing with us about a location near you. ❤️

  9. riss

    Our local red lobster is not included in the list (yet). I guess we should go this week and use the gift card before it’s too late.

    • Amber (Hip Sidekick)

      Ours isn’t included yet either. 🤞 Glad you can head in with your gift card, Riss. Enjoy! ❤️

  10. jen13289

    Poughkeepsie, NY closed

  11. Jo Somebody

    I live in the Charlotte market and they haven’t closed yet. However, I was very dissapointed today because when I looked at the menu, it still listed the $25 all you can eat shrimp deal. However, when I ordered, the waitress told me it was “Just Mondays Only”. I didn’t argue with her, but they had no sign on the door or no note on the menu stating that. I just told her never mind and walked out the door.

  12. Becca

    It makes me so sad when I hear of the restaurants that close and their employees are given no notice at all. That is just awful. We moved to WI a little over a year ago and have a red lobster not far from us that we have been enjoying going for lunch about once a month. The staff are exceptional as is the food. We had stopped going to the one we used to regularly go to by our old home because the quality had really diminsihed. I am relieved to see it is not on the list of locations that closed. Hoping that all the employees facing job losses are able to find replacement jobs quickly.

  13. Ben

    I thought they could be sued by not giving employees 60 days notice of a layoff. The WARN act.

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