VIRGINIA BEACH, Va. — The Red Lobster on Independence Boulevard in Virginia Beach is one of 23 locations across the United States to close as part of the seafood restaurant chain's ongoing bankruptcy proceedings.
A recent court filing shows that the company will be closing these locations by Aug. 31, joining the more than 100 locations already closed earlier this summer.
Red Lobster is in the process of selling itself to Fortress Credit Corp., which recently gave the seafood restaurant a $100 million loan to stay afloat.
Red Lobster CEO Jonathan Tibus wrote in bankruptcy filings that a number of reasons led to the decline in Red Lobster including mismanagement, competition, inflation and more. The $20 endless shrimp deal becoming a permanent menu item contributed to the debt, losing the chain $11 million, though it was not the main reason for the chain going bankrupt.
Fifteen states will see Red Lobster locations close, including two other Virginia restaurants located in Alexandria and Richmond.