the staff of the Ridgewood blog
Paramus NJ, Red Lobster, the well-known seafood restaurant chain, may close more locations, including three in New Jersey, pending court approval of its restructuring plan. The company filed for bankruptcy last month, citing over a billion dollars in debt. As part of the restructuring, officials aim to sell the business to its lenders in exchange for financing to keep operations going, which involves closing some of its nearly 600 restaurants.
New Jersey Locations at Risk
The potential closures in New Jersey include:
- 4411 Black Horse Pike, Mays Landing
- 3003 Route 130 South, Delran
- 211 Route 17 South, Paramus
Struggles Leading to Bankruptcy
Red Lobster has already closed over 50 locations across the country. The company has been grappling with rising lease and labor costs, along with the fallout from promotional deals like its all-you-can-eat shrimp offer. These promotions, while popular, have sometimes backfired. For instance, overwhelming demand for a recent promotion led to significant operational challenges and reportedly contributed to millions in losses.
Moving Forward
Red Lobster officials are hopeful that by selling the business to its lenders, they can secure the necessary financing to continue operations. The outcome of the bankruptcy proceedings and court decisions will ultimately determine the fate of the remaining locations and the future of the chain.
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It has always been a quality of food issue. Those who know seafood were never regular customers, thus the dearth of locations in New England. When King Crab legs came off the menu (their highest revenue item, oddly), I’ve never been back. If they can’t make it on Route 17, a fixture there for decades, they are done.