Red Lobster Says it Wants to Close Three Michigan Restaurants

It soon could lights out for Cheddar Bay Biscuits as Red Lobster is poised to close more than 120 locations in the US, including three restaurants here in Michigan.

Financial woes have plagued the seafood chain as of late. In April of this year, Red Lobster announced that it was considering bankruptcy, jeopardizing all its locations. Less than a month later, about 50 locations were shuttered, including its store in Fort Gratiot, Michigan. 

What Red Lobster Locations Will Close Next?

According to CNN, Red Lobster currently has more than $1 billion in debt and has less than $30 million in cash on hand. Last month's bankruptcy filing means it plans to sell its business to its lenders in order to receive the financing it needs to stay afloat.

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Part of that strategy includes a plan that puts more than 120 restaurants, including three here in Michigan, in jeopardy of closing - if the chain is unable to renegotiate its leases.

Here are the three Michigan locations that are on the list:

•  4109 Wilder Road, Bay City
•  3920 28th St., SE Kentwood
•  479 Telegraph Road, Waterford

Red Lobster locations in 30 states could be in danger of closing, with Florida being the state likely to be hit the hardest.

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Increasing labor costs, the pandemic, and the chain's all-you-can-eat shrimp promotion are all said to have contributed to Red Lobster's ongoing financial woes.