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After filing for bankruptcy protection last month and closing nearly 100 locations, Red Lobster is trying to renegotiate its rent with landlords across the country.
If the landlords fail to reach a deal with the restaurant chain, it may have to close another 135 locations across the country, according to court documents obtained by Restaurant Business.
The closures would represent about 40% of Red Lobster's 570 restaurants. The closures include the Red Lobster in the heart of Times Square in New York City, where the landlord wants to double the rent to $2.2 million a year. The location has been open for 22 years but could shutter on June 30 if a deal cannot be reached.
Red Lobster joins a long list of restaurant chains that have been struggling in recent years. Red Lobster's sales decreased 13% between 2019 and 2023. The seafood chain also took a massive loss after offering an all-you-can-eat shrimp deal. While the promotion brought more people into the restaurant, the chain lost $11 million in just three months.