Last month, seafood chain Red Lobster filed for Chapter 11 bankruptcy. The company said it intended to use the proceedings to "drive operational improvements... [and] simplify the business through a reduction in locations". It also announced it was looking for a buyer.

This came after Red Lobster abruptly shut down nearly 50 restaurants across the U.S., which we learned about from a company that liquidates restaurant equipment. At the time, one Michigan location - in Fort Gratiot - was closed.

Now it looks like more Michigan Red Lobsters could be on the chopping block.

Red Lobster Mulls Possible Bankruptcy Filing Amid Debt And Rising Labor Costs
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The chain says the business woes its dealing with are a result of losing $11 million last year after making the "Unlimited Shrimp Deal” a permanent menu option instead of a limited-time promotion.

READ MORE: Are There Any Boston Market Restaurants Left in Michigan?

Red Lobster, Facebook
Red Lobster, Facebook

On June 6, CNN reported that Red Lobster revealed in bankruptcy court that it had more than $1 billion in debt and less than $30 million in cash on hand. The company plans sell its businesses to its lenders and get financing in the hope of keeping some of its 600 restaurants nationwide open.

READ MORE: Have you visited Michigan's Best Deli?

The restaurant chain revealed nearly 125 restaurants that will close if leases cannot be negotiated. The list includes three Michigan locations:

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

At this time, they are among more than 20 Red Lobsters still open in Michigan.

The state that would be hardest hit is Florida, with more than 25 locations in danger of closing.

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Gallery Credit: Jessica Poxson