Red Lobster Threatens to Close These 3 Michigan Locations

Well, it seems the sea is getting a bit choppy for Red Lobster. The beloved seafood chain recently filed for Chapter 11 Bankruptcy, and Michigan's locations might not make it through the storm. How did we get here? Let's take a dive into the deep waters (not so deep we need a billionaire to get there) of corporate mistakes and the limits of 'Unlimited Shrimp.'

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In May of 2024, Red Lobster announced their bankruptcy filing, planning to "drive operational improvements" and "simplify the business through a reduction in locations." Translation: they need to close restaurants faster than you can say, "Don't spoil your appetite on Cheddar Bay Biscuits." This comes after they've already shuttered nearly 50 locations across the U.S., including the Fort Gratiot, Michigan location.

The Water's Nearly Boiling Over For These Michigan Red Lobster Locations

The latest news from bankruptcy court reveals a grim future for more Michigan locations. According to CNN, if Red Lobster can't renegotiate leases, three more spots might close their door:

• Kentwood
  • 3920 28th St. SE
• Waterford
  • 479 Telegraph Road
• Bay City
  • 4109 Wilder Road

The Shrimp That Served Up Bankruptcy for Michigan's Red Lobsters

So, what led to this seafood shutdown? Turns out the "Unlimited Shrimp Deal" sunk more than just profits. Red Lobster made the pomo a permanent menu item, losing a staggering $11 million last year. Combine that with over $1 billion in debt and less than $30 million in cash, and you've got a recipe for all-you-can-eat financial trouble.

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The chain hopes to sell its business to lenders and secure financing to keep some of its 600 restaurants afloat. But as the tides of bankruptcy rise for the company, Michigans seafood lovers might have find a new port for their lobster fix.