Red Lobster restaurants in Washington, Idaho and Oregon — including one in Kennewick — have largely been spared as the bankrupt company shutters its most unprofitable locations.
Red Lobster Seafood Co., based in Orlando, Fla. filed for protection from creditors in U.S. Bankruptcy Court for the Middle District of Florida. It is using the process to cancel leases for restaurants it believes would “continue to drive losses” and to sell the company’s assets
Prior to filing for bankruptcy, Red Lobster operated 570 casual seafood restaurants chiefly in the U.S. and Canada and employed about 36,000.
The court has canceled more than 120 leases to date. That includes two in Washington, one in Idaho and none in Oregon. More closures could be added to the list.
But as of late August, the only closures in the Northwest included two Washington locations — Silverdale and Lynnwood — and one Idaho one — Lewiston.
That leaves 15 still operating in the Pacific Northwest, including the Kennewick restaurant, 1120 Columbia Center Blvd., next to Target.
Washington restaurants continue to operate in Lynnwood, Federal Way, Yakima, Tacoma, Olympia, Kelso, Spokane and Vancouver.
Idaho has Red Lobster locations in Boise and Coeur d’Alene.
Oregon has Red Lobsters in the Portland suburbs of Tigard and Gresham, and in Eugene, Medford and Salem.
The next key court date is a Sept. 5 sale hearing. The original July 29 hearing was rescheduled when no qualified bidder emerged.
Fortress Credit Corp., the company’s creditors, created a “stalking horse,” RL Purchaser, to acquire the company if no better offers surfaced as part of the bankruptcy case.
