Fact Check: Red Lobster Times Square Closure - Is the Iconic Restaurant Really Shutting Down After 20 Years? The rumor mill is buzzing with claims that the Red Lobster in Times Square is closing its doors for good, citing financial struggles and a slump in tourism. Viral social media posts allege the lease is up and the shrimp deal just couldn't save it this time. After verifying with the restaurant's official corporate statements and local business records, we can confirm this is partially true. The Red Lobster Times Square location is indeed slated for closure next month, but the claim that it's due to a sudden collapse is false. The primary reason is an expired lease amid a broader corporate restructuring, not a sudden bankruptcy or a direct result of the viral 'Endless Shrimp' promotion losses. While fan favorite Cheddar Bay Biscuits are safe at other NYC locations, this specific Times Square spot is closing. So, what is real vs fake? The closure is real. The exaggerated narrative of a chain collapse is fake.