COLUMBUS, Ohio (WCMH) — Red Lobster is rejecting the lease for a shuttered Columbus-area location, among nine Ohio restaurants that court documents say are closing after the company filed for bankruptcy last month.
The Orlando, Florida-based seafood chain’s restaurant at 1691 Dublin-Granville Road has been closed for several months, with the building now home to graffiti and code violation notices posted near the front door. Still, the Columbus-area eatery is listed in recent court filings as one location that is permanently closing after Red Lobster rejected the eatery’s lease, along with the following eight Ohio restaurants:
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3655 Orange Place, Beachwood
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6500 Miller Lane, Dayton
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2340 Tiffin Ave., Findlay
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1422 Reynolds Road, Maumee
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255 Graff Road SE, New Philadelphia
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7607 Day Drive, Parma
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17227 South Park Center, Strongsville
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4990 Monroe Street, Toledo
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Red Lobster did not respond to NBC4’s request for comment to clarify when exactly the Dublin-Granville Road location closed or if the shuttering was tied to the company’s May bankruptcy filing. In a previous statement, the company’s CEO Jonathan Tibus said “restructuring is the best path forward for Red Lobster.”
“It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth,” said Tibus. “The support we’ve received from our lenders and vendors will help ensure that we can complete the sale process quickly and efficiently.”
Red Lobster announced on May 19 that the company had filed for Chapter 11 bankruptcy protection and has since listed around 100 stores online as closed. The closures span more than 25 states including California, Florida, Indiana, Michigan, New York and South Carolina, with kitchen equipment from more than 50 of those locations up for auction.
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The company’s website still lists 31 other Ohio locations as open, including the following Columbus-area restaurants:
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1520 Georgesville Road, Columbus
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2147 S. Hamilton Road, Columbus
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1270 Polaris Parkway, Columbus
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6091 Sawmill Road, Dublin
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1515 River Valley Circle North, Lancaster
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909 Hebron Road, Heath
In the bankruptcy filing, Red Lobster said it has less than $30 million in cash and currently holds an estimated $1 billion to $10 billion in liabilities to more than 100,000 creditors. As part of the filing, Red Lobster entered into a “stalking horse” agreement, meaning it plans to sell its business to another company formed and controlled by its lenders.
Subtracting those set for closure, Red Lobster operates more than 540 restaurants across the U.S. Texas is home to the most locations, with 45 currently open and nine closing. Florida is in second with 41 open restaurants and 17 closing, while Pennsylvania is fourth with 32. Rounding out the top five, Ohio is tied with California with 31 open.
Red Lobster has spent $190.5 million so far this year operating all of these locations, including more than $64 million dedicated to “underperforming locations,” the filing said. The seafood chain also noted its annual guest count has decreased 30% since 2019, with net sales showing “material decline” through the past year, including a $76 million loss in 2023.
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A key turning point was the chain’s “endless shrimp” deal last year, which allowed patrons to pay $20 for unlimited shrimp and was meant to only be a limited-time promotion. A decision to add the special as a permanent menu item ended up costing the company $11 million.
Founded in 1968, the chain has also expanded to nearly 30 locations in Canada and 27 other international restaurants. As of May, the company’s U.S. workforce consists of 34,000 employees.
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