UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

__________________________________________

FORM 8-K

__________________________________________

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) ~~June~~January 816, ~~2007~~2008

Shells Seafood Restaurants, Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware	~~0-28258~~	650-~~0427966~~28258	65-0427966
(State or Other Jurisdiction of Incorporation)	~~(Commission File Number)~~	(~~IRS~~Commission ~~Employer~~File ~~Identification No.~~Number)	(IRS Employer Identification No.)
16313 N. Dale Mabry Hwy, Suite 100, Tampa, FL			33618
(Address of Principal Executive Offices)			(Zip Code)

16313 N. Dale Mabry Hwy, Suite 100, Tampa, FL	33618
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (813) 961-0944

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

o[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o[ ] Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01 Entry ~~into~~Into aA Material Definitive Agreement.

On January 16, 2008, Shells Seafood Restaurants, Inc. (the “Company”) entered into a line of credit loan facility with Colonial Bank, N.A. in the amount of $350,000. The loan carries a variable interest rate of 1% above prime bank ~~information~~rate. The ~~under~~initial ~~Item~~rate 2is 8.0125%. The line of ~~this~~credit ~~Current~~facility ~~Report~~matures on ~~Form~~September 19, 2008 ~~8-K~~and is ~~incorporated~~secured by the $1,050,000 letter of credit with Food and ~~under~~Entertainment ~~this~~Co. The ~~Item~~Company 1will use the funds for working capital purposes.01 The aspreceding ifdescription ~~set~~of ~~forth~~the ~~herein~~terms of the line of credit facility are qualified by reference to Exhibit 10.1 to this Report.

Item 2.01 Completion of Acquisition or Disposition of Assets.

Effective as of June 8, 2007, Shells Seafood Restaurants, Inc. (the “Company”) terminated its lease with Timothy D. Cross (the “Landlord”), for the premises located at 2561 University Drive, Coral Springs, Florida in exchange for the payment by the Landlord to the Company of $225,000. The Company ceased its operation of the restaurant located on such premises on May 27, 2007 in anticipation of the termination of such lease. A copy of the Lease Termination Agreement is filed herewith as Exhibit 10.1

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

~~10.1~~Item ~~Lease Termination Agreement between the Company and Timothy D~~No. ~~Cross.~~Description

10.1	Line of Credit Agreement with Colonial Bank, dated January 16, 2008.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date : June 14, 2007	SHELLS SEAFOOD RESTAURANTS, INC.
	SHELLS SEAFOOD RESTAURANTS, INC.
		By:	/s/ Warren R. Nelson
Date: January 22, 2008
		Name:	Warren R. Nelson
	By: ____________________________________
		Title:	Executive Vice President and Chief Financial Officer
	Name: Leslie J. Christon
	Title: President and Chief Executive Officer

Exhibit Index

Item No.

Description

10.1	Line of Credit Agreement with Colonial Bank, dated January 16, 2008.

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