Red Lobster seeks buyer to avoid bankruptcy. What about the NJ locations?

Seafood chain Red Lobster — known for its cheddar biscuits and limitless shrimp — is reportedly considering a new buyer as it desperately looks to avoid bankruptcy, according to various media reports .

According to the reports , Red Lobster is also looking at Chapter 11 bankruptcy to restructure its debt and get out of several expensive and long-term leases, should the new buyer route fail.

Representatives from Red Lobster could not be immediately reached for comment on Wednesday morning.

Red Lobster posted an $11 million loss in the third quarter last year, and a $12.5 million loss in the fourth quarter.

There are 16 Red Lobster locations in New Jersey

• 1271 U.S. Route 22, Bridgewater
• 2100 Route 38, Cherry Hill
• 3003 Route 130 South, Delran
• 750 Route 18 North, East Brunswick
• 635 U.S Highway 1, Iselin
• 3255 Brunswick Pike, Lawrenceville
• 4411 Black Horse Pike, Mays Landing
• 211 Route 17 South, Paramus
• 700 Plaza Drive, Secaucus
• 7000 Hadley R.d, South Plainfield
• 303 Route 10, Roxbury-Ledgewood
• 1298 Hooper Ave., Toms River
• 2520 Route 22, Union
• 3849 South Delsea Drive, Vineland
• 520 Highway 46, Wayne
• 1500 Almonesson Rd., Woodbury

Future with a bankruptcy

A bankruptcy does not necessarily mean store closures, though in many cases it does.

“A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time,” reads the U.S. Courts website .

During the Chapter 11 process, “court will help a business restructure its debts and assets,” reads financial information website Investopedia .

“Some companies don’t survive the Chapter 11 process, but many others, including household names such as Marvel Entertainment and General Motors, successfully emerge and thrive,” said CFO Magazine .

Brands in trouble

Union-based Bed Bath & Beyond filed for bankruptcy in April 2023 and closed hundreds of stores in the U.S, including 13 in New Jersey. Last summer, Overstock.com bought the bankrupt retailer’s assets, relaunching BB&B as an online-only presence at bedbathandbeyond.com .

Rite Aid declared bankruptcy in October, though its fate is uncertain as it closes up 500 stores in the U.S, many in New Jersey .

Meanwhile, trending mall clothing retailer Express filed for Chapter 11 bankruptcy protection and announced plans to close 95 U.S. stores, including all seven in New Jersey .

A glimmer of hope

Joann, a fabrics and crafts store, was able to emerge from its bankruptcy last month and keep all its New Jersey stores open.

In 2017, Toys R Us, heavily in debt, filed for bankruptcy. After being acquired by brand management firm WHP Global, the retail chain has since opened a flagship store at American Dream in East Rutherford, and announced plans to open an additional 24 brick-and-mortar stores .

Daniel Munoz covers business, consumer affairs, labor and the economy for NorthJersey.com and The Record.

Email: munozd@northjersey.com ; Twitter: @danielmunoz100

This article originally appeared on NorthJersey.com: Red Lobster seeks buyer to avoid bankruptcy. What about the NJ locations?