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3 Michigan Red Lobster locations could be next to close

Red Lobster filed for Chapter 11 bankruptcy protection in May

A Red Lobster restaurant is seen in Schaumburg, Ill., Monday, May 20, 2024. Red Lobster is seeking bankruptcy protection days after closing dozens of restaurants. (AP Photo/Nam Y. Huh) (Nam Y. Huh, Copyright 2024 The Associated Press. All rights reserved.)

Three Red Lobster locations in Michigan, including one in Metro Detroit, could be next to close, according to new bankruptcy documents.

USA Today reports the struggling restaurant chain listed 228 rejected leases that are losing money in documents filed last week. The new list of restaurant could close if they are unable to renegotiate their leases, according to the report.

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As of last month, 99 Red Lobster locations across 28 states had already closed.

The Michigan locations on the list include:

  • Bay City (4109 Wilder Road)
  • Kentwood (3920 28th Street. S.E.)
  • Waterford (479 Telegraph Road)

A location in Fort Gratiot had already closed last month.

Red Lobster filed for Chapter 11 bankruptcy protection in May. As part of the filing, Red Lobster entered into a so-called “stalking horse” agreement, meaning it plans to sell its business to an entity formed and controlled by its lenders.

Orlando, Florida-based Red Lobster said in court filings that its annual guest counts were down 30% from 2019. The chain lost $76 million in 2023.

Red Lobster said in the court filing that it has more than 100,000 creditors and estimated assets between $1 billion and $10 billion. The company’s estimated liabilities are between $1 billion and $10 billion.


About the Author
Ken Haddad headshot

Ken Haddad has proudly been with WDIV/ClickOnDetroit since 2013. He also authors the Morning Report Newsletter and various other newsletters, and helps lead the WDIV Insider team. He's a big sports fan and is constantly sipping Lions Kool-Aid.

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